In the late 1990s, the Taipei County Government came forward with a plan to established the Wulai Atayal Museum and gave a subsidy of more than NT$30 million to Wulai Township Office to construct the museum.

On 1 January 2005, the operations and management of the museum was transferred from Bureau of Cultural Affairs to Scenic Special Area Management Office of the Construction Bureau.

On 1 July 2007, the museum operation was transferred again to the Indigenous Peoples Department.

A large aboriginal statue stands at the top of the museum building.

[2] The museum displays the history, customs, culture, rituals, religious faith and festivals of the Atayal aboriginal tribe.