The Powerhouse Museum opened on March 10, 1988. The challenging design by NSW Government Architect J Thompson and Design Architect Lionel Glendenning for the design of the Powerhouse Museum converting the shell of an industrial building into one of the world's most up-to-date museums was deservedly given the 1988 Sulman award for architectural merit. The Powerhouse Museum is the major branch of the Museum of Applied Arts & Sciences in Sydney, the other being the historic Sydney Observatory. 

Although often described as a science museum, the Powerhouse has a diverse collection encompassing all sorts of technology including  Decorative arts,  Science,  Communication,  Transport, Costume,  Furniture,  Media,  Computer technology, Space technology and Steam engines. It has existed in various guises for over 125 years.

The Powerhouse Museum has its origins in a recommendation of the trustees of the Australian Museum in 1878 and the Sydney International Exhibition of 1879 and Melbourne International Exhibition of 1880. Some exhibits from these events were kept to constitute the original collection of the new Technological, Industrial and Sanitary Museum of New South Wales.

The museum was intended to be housed in the exhibition buildings known as the Garden Palace, which were destroyed by a fire in September 1882. A temporary home at the Agricultural Hall in the Domain served until relocated to new, purpose-built premises in Harris Street as the Technological Museum in August 1893. It incorporated the Sydney Observatory in 1982. The museum moved to its present location (the old Ultimo Power Station at 500 Harris Street) in March 1988, and took its present name (The Powerhouse Museum) from this new location. In February 2015, the State Government controversially announced that the museum will be relocated to Parramatta.