The Manhyia Palace Museum used to be the residence of Otumfuo Prempeh I and Otumfuo Sir Osei Agyeman Prempeh II, K.B.E. the 13th and 14th Kings of the Asante Nation. The building was put up in 1925 by the British Government for Otumfuo Prempeh I who returned from exile in the Seychelles Islands in 1924, to replace the Asantehene’s Palace at Adum which was destroyed during the Yaa Asantewaa war.

Oral traditional has it that prior to the building of the Manhyia Palace there had been two Palaces for the Asante Kings, one built by Nana Osei Tutu at Adum in the area where the Kumasi Home Stores is now sited.

It's location is marked by Nana Prempeh I, Kumasehene’s House. The second Palace was built by Nana Bonsu when he returned from the Coastal Campaign of 1806. That Palace was situated in the area where the Kumasi Fort , now Military Museum is situated. He used that Palace as a Museum where he kept valuable Asante items for show to visitors.
The first Palace was burnt down alongside other houses in 1874 by the soldiers of Sir Garnet Wolseley who also demolished the second Palace known as Nana Bonsu Aban.

After the Sagrenti of 1874, Nana Kofi Kakari, the Asantehene, at that time rehabilitated the first Palace and lived there. Nana Mensah Bonsu, Nana Kwaku Dua II and Nana Prempeh I also lived in that Palace subsequently.  When Nana Prempeh I was exiled in 1896, the Palace was not properly kept. Its destruction occurred during the Yaa Asantewaa War when the stool and what was left of its regalia were removed from the Palace for hiding in other parts of Asante Kingdom.  One interesting development was that after the exile of Nana Prempeh I, the British reconstructed “Nana Bonsu Aban” and named it the “The Kumasi Fort”.

The Fort was used by the Resident Commissioner as administrative offices of the Asante Region. The Governor and his entourage were in the Fort when the Yaa Asantewaa War of 1900 was declared. When Nana Prempeh I returned from Seychelles Islands to Kumasi in Nov 1924, there was no Palace for Asantehene. He therefore had to stay at Asafohene’s Palace. It was this state of affairs that prompted the British Government to put up the present building now housing the Museum for Nana Prempeh I. However, Nana Prempeh I turned the offer down and only moved into it as his residence after Asanteman had paid for it.

The museum was officially opened by Otumfuo Opoku Ware II on the 12th August 1995 as part of the activities or events marking the Silver Jubilee of his accession to the Golden Stool. The Museum building is of great historical interest and importance. It not only houses the Museum’s exhibits; it is itself an exhibit of the Museum. It was built in 1925 for Asantehene Prempeh I by the British Colonial Government, as his private residence when he returned from exile in the Seychelles as plain Mr. Edward Prempeh.

The Museum is a two storey building, with open verandahs and a courtyard. A small outhouse was added in 1995 for use as the Museum shop.  It was used as the office of the Kings. It served as Administrative headquarters of Asante Nation from 1925-1974 until Otumfuo Opoku Ware II moved from this office to the new residence at Manhyia. Artifacts now displayed in the room are ; a writing desk and a chair used by the Kings, a book shelf, the bronze head of Nana Sir Osei Agyeman Prempeh II and a sketch map of the Asante Nation.