The building of the Ethnographical Museum is a design by Alajos Hauszmann, constructed between 1893 -1896. Built as the Palace of Justice, it served as the Supreme Court of Hungary until 1945. The building's design links elements of Renaissance, Baroque and Classicism.

A vast portico crowned by two towers dominates the facade. It also features a gable crowned by the figure of the Roman goddess of justice in a chariot drawn by three horses. The grand hall inside the main entrance features a marvelous staircase and frescoes.

The building was first used as a museum in 1957, housing the Hungarian National Gallery, which was later transferred to the Royal Palace. The Ethnographical Museum has been here since 1973.

The museum's collection started in 1872 in the Department of Ethnography at the Hungarian National Museum. There are now around 170,000 exhibits, although most are not on display.

The collection includes artifacts reflecting the rural folk culture of Hungary from prehistoric era to the 21st century. A map from 1909 shows the settlement of the various communities who came to Hungary.

Ethnic items on these communities, as well as primitive objects from North and South America, Africa, Asia and Australia, are also on display. The museum has two very informative permanent displays: Traditional Culture of the Hungarian Nation, and From Primeval Communities to Civilization.