The founding of musum began in1987 from the Cultural Unions of Palekatro "Elia and Itanos" with the support of the Monastery of Toplou and the local government.
In 1989 the crumbling traditional Cretan house was bought and restoration was begun immediately.
With the help from the Development Union of Sitia, the restoration was completed and objects were collected from around the region.
The museum exhibits common items and tools that would have been in use by the generations of people from the times of the Turkish Occupation up until 1960.
Today's visitors can get a complete picture of
an authentic Cretan house, with it's traditional furniture and everyday household items. As well as, rare kinds of Cretan popular art.