The history of Qasr Garden Museum dates back to the Fath-Ali Shah Qajar era, roughly the early years of Tehran's formation as a city. After Fath-Ali Shah, the garden fell into neglect and was converted into a military barracks, which while destroying the garden, preserved its boundaries in a recoverable form.

During the first Pahlavi era, Iran's membership in the International Congress on Penal Reform led to the construction of Qasr Prison in 1927 by Georgian-born architect Nikolai Markov. The intelligent yet simple diagram and architecture of Qasr Prison made it one of the key elements of this historic complex.

With the opening of this garden museum, the transmission of culture to visitors has been made possible in an engaging language. The grounds have been returned to their original use as a garden, trees replanted, Qajar garden lines restored, and most importantly, the peripheral walls removed — transforming its use from a private royal garden or closed military/prison compound into a public garden museum.