The museum was setup in 1976 in order to display the artifacts recovered from the excavation conducted from 1952 to 1961. The Museum has three galleries. In the front gallery depicts an artist’s conjectural idea of Harappan town of Lothal. There are also introductory write-ups and maps about the site. The gallery at left side has showcases with beads, terracotta ornaments, replicas of seal and sealings, shell and ivory objects, copper and bronze objects, tools and potteries yielded from excavations.
The gallery at right has game objects animal and human figurines, weights, painted potteries, objects recovered from burials and ritual objects, miniature potteries, bricks besides a replica of a joint burial and a scaled model of Lothal site. Out of the 5089 objects unearthed during the excavation, 800 objects are on display in the museum. Apart from the exhibited antiquities, the most fabulous antiquities of Lothal are beads, steatite seals with unicorn motif and inscription, terracotta sealing with an elephant motif, Persian Gulf type seal, gold necklace copper / bronze fish hooks, bangles, dish on stand, perforated jar, jar painted with the stories of thirsty crow and cunning fox, terracotta bull, horse, model boat, model of mummy, ivory scale and shell compass, chess dice, etc. The museum has a small reference library and a publication counter for selling publications of the Archaeological Monuments.