As hinted by the name of the municipality (in Slovene železo means iron), the most important economic activity in the region is the iron industry, and accordingly the main collection on the ground floor of the museum focuses on Železniki's 600-year history of iron production. Displays present the mining of iron ore, its transportation and smelting in the furnace, the processing of raw iron into semi-finished products in the forge, and the manufacture of finished products in the blacksmiths' workshops.
The first floor presents the activities and crafts which developed together with the iron industry, including woodworking, coopering, charcoal burning and the manufacture of roof slates. All of the presented activities are further illustrated by a wealth of products and original tools.
The installations on the second floor focus on the general history of the town. Over 300 original laces in the lace room present the development of bobbin-lace from 1881 to the present. A small collection on the National Liberation War illustrates the events in the Selca Valley and Železniki during the Second World War. The last room is the memorial room dedicated to Dr France Koblar, a native of Železniki who was an eminent theatre critic, professor of the history of Slovene drama, editor and author of notes in the collected works of Slovene poets and writers, and a long-time member of the Slovene Academy of Sciences and Arts.