Nawab Mir Yusuf Ali Khan, a chief of the Salar Jang family of Hyderabad, Salar Jang (2-2) served as the Prime Minister of Hyderabad during the system of governance. He spent a significant amount of his income over a period of thirty-five years, and collected artifacts from all over the world.
Inauguration of Salar Jang Museum by Prime Minister Jawaharlal Nehru, c. After the death of the Nawab in (1.2), these collections were left behind in his ancestral palace Dewan Deodi. The collection was previously exhibited there as a private museum, the Salar Jang Museum, which was inaugurated by Jawaharlal Nehru on December 6.
Old timers believe that the current collection is half of the original art wealth collected by Nawab Art. His employees got rid of part of it, as the Nawab depended on his staff for supervision.
On May 1, the museum moved to its present location in Darul Shifa, and was managed by the Board of Trustees under the Salar Jang Museum Act of Telangana as the former president. Some other artifacts were lost or stolen while the museum was being moved from Dewan Deodi to its present location.
In May, the museum signed a memorandum of understanding with the National Mission on Manuscripts, and it was declared a Manuscript Preservation Center.
٢٠٠٦ In, a fire broke out in an auditorium on the museum premises. However, it was quickly extinguished and no artifacts were damaged. Firefighting facilities were upgraded after the incident.