The building was originally built by a Buryat Russian merchant, Tsogto Garmayevich Badmazhapov in 1904, for his personal use.

From July to August 1921, the Mongolian People's Republic's Central Committee, government and combined staff were located here, with Damdin Sükhbaatar in residence.

In the 1930s, the building housed the embassy of the Tuvan People's Republic, and it was subsequently converted into a Museum for Sükhbaatar.

In 1960, a resolution of the Central Committee of the Mongolian People's Republic made the exhibition permanent and relocated it to the current building, establishing it as the Museum of the History and Reconstruction of Ulaanbaatar (Mongolian: Улаанбаатар хотын түүх шинэчлэн байгуулалтын музей).

In total, the museum contains 134 documents, 224 silver objects, 30 archaeological finds, 16 geological charts, 132 historical exhibits, 335 pictures, 77 printed boards and models, 54 drawings, diagrams and plans, 898 photographs, 36 albums, 1883 slides, negatives and diafilms, 27 audio and video records, 62 commemorative items, and 234 books: in total 3,832 accessioned objects.