The 2nd Session of AVNOJ, which was held in Jajce on November 29th 1943 had for it result the foundation of SFR Yugoslavia.
The Jajce-born Yugoslavia was the socialist counterpart of the royal residence from the Middle Ages.
At the same session a document was adopted to mark the completion of the establishment of the state authorities of Yugoslavia. The building was reconstructed in 1947 and 1953. The Museum was founded in 1953. The first permanent collection of the Museum was installed in 18th February 1959.
In the course of the war (1992-1995) the Museum was exposed to significant damage, and its storerooms were plundered.
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