Established in 1956, the museum boasts as the former residence of Lu Xun, a short story writer. The courtyard was bought by Lu Xun at the end of 1923, and redesigned in the following year. The courtyard served as the residence his residence in Beijing; hence, it is a key historic site under national protection. It is said that while residing there, he contributed to Chinese literature with the exception of the novel.
His wife donated the residence in 1949, and in 1956, it was transformed into one of the most beautiful museums around the Houhai Lake. Exhibition includes Lu Xun's unpublished manuscripts, Bronze bust, photographs, letters, anatomy books, a copy of his first published short story entitled "Diary of a Madman", which appeared in New Youth magazine and a proof copy of Qu Qiubai's "Collected Narrations Written at Sea". In total, there are over 60,000 relics housed at the museum.