Azerbaijan National Carpet Museum was established in accordance with the decree No. 130 of the Council of Ministers of the Azerbaijan SSR dated March 13, 1967. From 1967 to 1993, the museum was called the Azerbaijan State Museum of Carpet and Folk Applied Arts, from 1993 to 2014 – State Museum of Carpet and Applied Arts named after Latif Karimov, from 2014 to 2019 – Azerbaijan Carpet Museum, and from 2019 to the present – Azerbaijan National Carpet Museum. 

In 2014, the museum was moved to a new building in the territory of the Seaside National Park.

The museum fund numbers 10.299 exhibits and includes 7 collections: Pile Carpets; Flat-woven Carpets; Carpet Products; Artistic Metalwork; Pottery, Glass, Wood, Paper; Textile, Clothing, Embroidery; and Jewelry. The museum houses items from the Bronze Age, the Ancient Period, and the early Middle Ages, although the greater part of the collection focuses on the 18th to 21th centuries.

The museum has become a research-training and cultural-educational center where many events, such as exhibitions, international symposiums, conferences, volunteer programs, expert master classes, lectures on applied arts and ethnography, and Family Days are held.

In 2010, the Azerbaijan National Carpet Weaving Art was included within the UNESCO Representative List of the Intangible Cultural Heritage of Humanity. In 2017, the Azerbaijan Carpet Museum was awarded the Best Experience award in the field of intangible cultural heritage database by the International Council of Museums.