The Nafplio Folklore Museum was created in 1974 following the initiative of the community ''V. Papantoniou'' Peloponese Folklore Foundation.
The first exhibition was dedicated to rural and urban Peloponese costumes. In 1981 the ground floor was reconfigured to house an exhibition of natural textiles from Greece. In 1986, the first floor was redesigned, creating an additional exhibition space, shop and ancillary areas.
The opening of a further exhibition, ''The best of PLI'', took place on 11 August 1999. In 2006 a new permanent exhibition, ''Hellenic Asti: Nafplio 1822-1922'', was added and mainly concerns Nafplio and the surrounding areas.