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The museum, located on the ground floor of the institute, contains a rare collection of statues, ritual objects, traditional art objects, thangkas (painted, woven and embroidered scrolls) and ancient manuscripts in Sanskrit, Tibetan, Chinese and Lepcha. The exhibition is dominated by a majestic silver image of Manjushri – the Bodisattva of knowledge – that was brought from Tibet.

Among the manuscripts are: the Prajna Paramita and Astasahastra written in Tibetan golden script; an 11th century palm leaf manuscript of the Saratama Prajnaparamita by Ratnakara Shanti; and a 12th century Chinese manuscript of the Prajana Paramita Sutra that was brought from South Korea.

A casket containing the relics of two great Asokan missionaries, Madhyama and Kasyapagotra is one of the precious assets of the museum. Five sandalwood images representing Padmasambhava, the three founding lamas of Sikkim and the first King Phuntsok Namgyal constitute an example of Sikkimese art. New objects of traditional art are constantly added to the collection.