The museum was founded in 1999. The collection is composed from donations received from parish and district residents and graduates from former local schools. The museum continues intensive exploration of local history. Here, visitors can learn about the history of Rugāji and Lazdukalns civil parishes from early 20th century until today.

Rugāji District Museum offers a permanent display that features historical artefacts, household items and tools. It also creates thematic exhibitions about locally prominent figures, the history of parish schools, the history of former kolkhozes (collective farms), artisans, deportations, etc., as well as receives travelling exhibitions from other districts. The museum also organises different events such as exhibition openings and commemorative ceremonies on 25 March and 14 June, participates in the organisation of the local Lāčplēsis Day procession, etc.

The museum frequently writes articles on the history of the district for the local newspaper “Kurmenīte”, gives consultations, scientific and methodological assistance to pupils and students for their term papers and bachelor papers about the history of Rugāji District, and offers guided tours around Rugāji village and district. The staff drafts and participates in various projects to promote continuous development of the museum.