The Museum then known as the "Hyderabad Museum" started the collection of works of the contemporary artists from 1949-50. It is situated in the Public Garden of Hyderabad. It is the oldest museum of Hyderabad. It has nearly 14,000 gold coins, besides 1,00,000 silver, potin, lead, and copper coins belonging to various dynasties in general and particular in Andhra Pradesh. There are many galleries devoted to Stone Sculptures, Bronzes, Weapons, Arms & Armoury, Copies of Ajanta murals, Manuscripts, Textiles, Bidri ware, coins, modern paintings, miniatures, sculptures etc. Though there is a vast textile collection it has not been displayed alongwith other objects.

The collection of objects housed in the AP State Museum in Hyderabad provides us with a vision of the land’s rich legacy in art and crafts. A portion of the exhibit features photographs and letters of Mahatma Gandhi. The exterior of the building is Indo-Saracenic architecture. open on all days from 10’o clock in the morning to 5.30 in the evening on all days except Fridays. Some sculptures date back to Satavahana and Ikshvaku periods in ancient Andhra. The museum also has a unique collection of paintings and sculptures of contemporary artists.