In order to preserve the classical instrument, Ram Prasad Kadel began a collection of traditional folk musical instruments in 1995 AD. In 1997, the Nepali Folk Musical Instrument Museum (NFMIM) was established as a non-profit organization with the Nepalese government.

Starting with the collection of Shankh (an instrument made of a conch shell), Kadel decided to open the doors to the public in temporary premises at Bhadrakali Temple, center Kathmandu in 2002. As the collection grew, the museum was moved to Tripureshwor Mahadev Temple and renamed as Music Museum of Nepal in 2007.