In 1816, the City of Fredericksburg completed work on the new Town Hall/Market House.  It was a handsome building, typical of the architecture of the Federal period.  The lower story, known as the Market House, was built of sandstone and opened onto the adjoining Market Lot through an arcaded side.  The Market Lot was probably covered with sand.  The Market House and Lot together comprised Fredericksburg's only legal vending place for a variety of foodstuffs.  The upper two floors of the building, made of brick, were used as the Town Hall.  They housed the chamber of the Fredericksburg Common Council, the town's governing body, as well as  the Mayor's Office, rental space and several small meeting rooms.  For the next 166 years, this building would remain the  focal point for local government.  In 1982, the Town Hall was vacated when the City moved their offices into a more modern building.  There followed countless hours of community discussion and public hearings about what to do with the old Town Hall building. 

As a result of these public hearings, the City resolved to establish an independent, non-profit corporation to lease and restore the building and install a museum.  Thus, the Fredericksburg Area Museum and Cultural Center was created.  The appointment of a Board of Directors was completed in 1985, the organization was chartered and a Director hired.  By 1988 funds were raised to accomplish the restoration of the building and the installation of the museum.  The funds were raised in equal amounts from the state, city and local community. 

The Statement of Purpose of the Museum as found in the Long Range Plan and approved by the Board of Directors in 1992 (updated) reads, "The purpose of the Fredericksburg Area Museum & Cultural Center is to collect, interpret and present the history and culture of this region of Virginia to all the people of the Fredericksburg area and to the many visitors attracted to the City.  The museum, located in the heart of the City in the Old Town Hall/Market House, is dedicated to promoting pride in the heritage of the men and women, from all stations of life who lived, worked and died to make the Fredericksburg area the special place it is."

The first floor of the Museum, housing the gift shop and temporary exhibits gallery, was opened in December 1988.  The renovation of the building and the installation of all permanent exhibits was completed in 1991. 

In February 1995, the Museum received the first place award from the American Association of Museums (AAM) Curator's Committee in the seventh annual exhibit competition for "The Write Stuff: Three Centuries of Fredericksburg on Paper."  The Museum underwent a Museum Assessment Program (MAP) I study in 1993.  Remarkably enough, it was recommended by the review team that the Museum skip MAP II and III and go straight to the accreditation review.  It was fully accredited by AAM in November 1995. 

In 1996 a second five year plan was adopted.  This plan called for increased programming to enhance the Museum's exhibits, more outreach programs for area schools, completion of adaptive reuse of the adjoining Market Square, increased membership levels and the creation of a $1,000,000.00 endowment.

In 1997 the Museum received a grant to begin work on a small book that looks at the history of the Fredericksburg area through the eyes of the Museum's collection. The book, History on Display would eventually receive honorable mention in the American Association of Museum’s Publications Design Competition. The endowment campaign was begun and realized donations and pledges of over $500,000.00. Finally, the Museum joined the Affiliates Program of the Virginia Museum of Natural History. Through this program the Museum was able to bring numerous educational opportunities for children to the Fredericksburg area, including a dinosaur exhibit that attracted almost 6,000 visitors to the Museum in a two month period.

More recently, the Museum led the year long celebration for the City of Fredericksburg's 275th anniversary in 2003. Later that year, the Historic Market Square renovations were completed and the space was reopened to the public.

In January of 2004 the Museum acquired the historic bank building located at 1001 Princess Anne Street, across the street from the Museum. In August of 2004 the Museum began its Capital Campaign towards the building’s adaptive re-use. In 2005 the Museum was awarded a prestigious Kresge Foundation Challenge Grant for $500,000, and shortly after was awarded a National Endowment for the Humanities Matching Grant for $400,000. Renovations of the Town Hall building were completed in 2006, with the opening of our new permanent exhibition, British Heritage - American Style.