This beautiful, restored house was constructed at the end of the 19th century and was the residence of landowner Themistoklis Patsalos. It is located in the picturesque village of Lefkara, one of the few villages in Cyprus maintaining a distinctive architecture and a hub of traditional artisans. The museum exhibits the local arts of embroidery and silversmithing. The upper floor recreates the ambiance of a wealthy house of Lefkara of the beginning of the 20th century, with the celebrated Lefkara lace and silverware on display. The ground floor shows a more rural domestic environment, reviving the simple Cypriot agricultural lifestyle.

During the beginning of the 20th century, the golden era of embroidery and lace making, local artisans and merchants travelled around the world, while the village was often flooded by international merchants eager to trade its magnificent pieces of art. As a result of this interaction, the village developed distinct features of European and urban architecture and lifestyle, which gave Lefkara its unique, semi-urban character.