The Museum of Greek Folk Art belongs to the state and comes under the Ministry of Culture. It was founded in 1918 under the name "Museum of Greek Handicrafts" and was housed in the Tzami. In 1923 it was renamed the "National Museum of Decorative Arts"; it was given its present name in 1959.

Anna Apostolaki was the director of the Museum of Greek Folk Art from1935 to 1953. From 1956 until 1980 it was under the direction of Popi Zora.

Until 1973 the Museum was housed in the Tzami in Monastiraki Square. Its main functions were then transferred to the building at Kydathinaion 17 in Plaka.

There are Museum Annexes in the Tzami, where the "V. Kyriazopoulos Collection of Folk Pottery" is now housed, the building at Kyrrestou 8, known as the "Baths of Athena", and the building at Thespidos 8 in Plaka.