Sydney businessman David Lowy established the museum in Temora due to its aviation history, good weather, flat terrain, a co-operative local council and uncontrolled air space below 20,000 feet.

Temora Aviation Museum was incorporated in late 1999, at which point construction of the facilities commenced, and a governing committee was formed.

The museum was officially opened to the public in June 2000 at which point construction commenced on the exhibition buildings, including: display space, theatrette, admission entrance, gift shop, a children's playground and picnic area.

In May 2019 the museum announced that it had reached an agreement with the Department of Defence to transfer ownership of 11 historically significant aircraft to the Royal Australian Air Force, effective 1 July 2019.

Twelve of the club's pilots were inducted into the RAAF Reserve as Special Capability Officers with the rank of flight lieutenant.