The museum was established in 1993, in response to efforts by local officials and volunteers to revive the shipyard area after operations at Fore River ended in 1986.

With help from local officials, the museum was established in 1993 by an act of the Massachusetts General Court to "acquire, refurbish and maintain United States naval ships and the adjacent physical complex in order that it will [serve] as a major attraction for local citizens and tourists.

"[4] After earlier attempts to obtain use of USS Lexington (CV-16), in 1994 the city and the volunteer group successfully negotiated the relocation of Salem from Philadelphia with the Naval Sea Systems Command.

[6] With a length of 717 feet (219 m), Salem provides a large amount of space for museum exhibits and casual exploration by visitors.

[7] Outside the realm of military history, the museum takes advantage of the history of the city which gave the ship its name, Salem, Massachusetts, famous for the witch trials of the late 17th century, by offering holiday themed tours and overnight stays during Halloween.