Building, where the museum is located, was built in 1850, as a one-storeyed caravanserais. In 1915, the building was given to “Metropol” hotel and the second store was rebuilt. Then, in 1918-1920’s, workers of the Cabinet of Ministers of the Azerbaijan Democratic Republic lived and worked there, in 1920-30’s, there located the labor union soviet of Azerbaijan. On November 1, 1939, according to the order of the Council of People’s Commissars of the Azerbaijan SSR under the number № 4972, a memorial museum named after Nizami was created in this building in connection with the 800th anniversary of the great Azerbaijani poet Nizami Ganjavi. The building was overhauled by the project of architects Sadikh Dadashov and Mikayil Huseynov, were placed sculptures in the façade and reconstructed two floors. Later, the memorial museum was changed to the Museum of Azerbaijani Literature. Interior of the museum was designed by Letif Kerimov. During the World War II, when the 800th anniversary of Azerbaijani poet Nizami Ganjavi was celebrated in Leningrad Blockade, the placement work of the museum’s exposition was continued. On May 14, 1945, the museum opened its doors to its visitors only after the victory in the Great Patriotic War, in spite of that, the museum was established in 1939.
Twice, in 1959 and 1967, the museum was overhauled, expanded and upgraded. In 2001-2003’s, the museum was changed again.
In summer, 2005, after the visit of Ilham Aliyev-the President of Azerbaijan on December 30, 2004, were prepared new projects, on the basis of which the museum was overhauled and renewed.
The total area of the museum is 2500 square meters, the 1409 meters of which consists of exposition and 173 square meters of fond. There are more than 3000 manuscripts, rare books, illustrations, portraits, sculptures, miniatures, memories of poets and other exhibits in 30 general and 10 auxiliary halls of the museum’s exposition. Part of the museum is a book shop.[9][10]
The sculptures of the eminent Azerbaijani poets and writers were placed on the façade of the museum on the following way: Muhammad Fuzuli (sculptor: F. Abdurrahmanov), Molla Panah Vagif (sculptor: S. Klyatskiy), Mirza Fatali Akhundov (sculptor: P.Sabsai), Khurshidbanu Natavan (sculptor: Y. Tripolskaya), Jalil Mammadguluzadeh (sculptor: N.Zakharov), and Jafar Jabbarly (sculptor: S. Klyatskiy). There are 120000 exemplars of the museum exhibits stored in the fond of the museum.