The founding of the museum was connected to the Millennium Exhibition of 1896. Ferenc Pfaff was the designer of the. 'Vehicular Hall' built around 1896. The hall was transformed into the Hungarian Royal Museum of Transport.

The Millennium Exhibition presents the most important vehicles, original carriages, and models. Maps and photos help to give an overview of the development of transport, rail, roads, and the post. Besides material on water-management, regulation of river ways, shipping, material of the building of the port of Fiume, and the regulation of the iron gate are displayed.

The success of the exhibition encouraged the experts to open a permanent exhibition. As the result of their struggle, they were able to open the Museum of Transport on 1, May, 1899. The location was obvious: the Millennium exhibition hall. The collection was based on the material collected before. The collection of engine models of M=1:5 proportion, unique in Europe, was the most valuable part of the show.

In WWII the museum and its material was significantly damaged, only 30% of it was saved. The reconstruction works took a long time

The permanent exhibition of the museum presents the documentations of transport on land, water, and bridge reconstructions. The Aircraft Historical and Spacecraft Exhibition opened in 1895. It presents the relics and traditions of the Hungarian history of flying.