It was founded in 1868 as the Deutsches Gewerbe-Museum zu Berlin, and was originally a teaching institute as well as a public museum. The collection grew significantly in the 1870s, and it was renamed Kunstgewerbemuseum in 1879. In 1881 it relocated into the Martin-Gropius-Bau – where Priam's Treasure was also on display for a time – and in 1921 it moved into the Stadtschloss.