The museum was conceived in 1959 under the aegis of the Italian Archaeological Mission to Swat and the Wali of Swat to contain his collection of artifacts. It was later expanded with the assistance of the Japanese government. The museum contains Gandharan statuettes and friezes depicting the lives of the Buddha along with seals, small reliquaries, and other treasures. Additionally, there are pre-Buddhist artifacts, and an ethnographic gallery with traditional carved Swati furniture, jewelry, and embroideries.

In 2021, a phenomenal discovery was made! Italian archeologists dug up a 2000-year-old (roughly) Buddhist apsidal temple in Barkot tehsil. This temple might be the oldest and earliest specimen of this architecture in the country. The temple was well-preserved and 4 meters high. Not only this, the discovery uncovered another remarkable location; the major streets of the old city which led to the finding of one of the gates of the ancient city. In addition to all of that, jewelry, coins, seals, statues, pottery fragments, and a variety of ancient artifacts were discovered as well. According to the news, this temple was abandoned in the 3rd century C.E., followed by an earthquake.