This museum houses an important collection which gives an idea of the evolution of Madrid both historically and from the perspective of its urban development.

It is located in Calle Fuencarral street, in the former Royal Hospice for the Poor, an 18th-century building whose façade, a paradigm of the Castilian Baroque style, is especially remarkable. Inside the museum is the superb painting by Goya entitled 'Allegory of the City of Madrid'. Also of interest are the collections from Madrid's artistic industries, and in particular the porcelain from the Buen Retiro Royal Factory. Paintings, prints, maps, scale models, drawings, photographs, postcards, sculptures, precious metalwork, fans, furniture, weapons, coins and medals are also on display.