In the year 1959. academic painter Bartol Petric launched the action of founding the Art Collection Juraj Plancic in the memory of his colleague and peer painter Juraj Plancic (Stari Grad, 1899. – Paris , 1930.). The action of collecting works of art was supported by numerous Croatian painters (today their works are a part of the Art Collection of the 20 th century), and in 1963. the Art Collection of Juraj Plancic(now Juraj Plancic Gallery) was opened on the second floor of the Palace Biankini). That moment marked the beginning of organized museum activity in Stari Grad.
In 1967., a group of cultural heritage enthusiasts (Ivo Politeo, Vinko Ruževic and Antonio Botteri), with the encouragement and involvement of dr. Niko Dubokovic Nadalini who was then the head manager of the Centre for the Protection of ultural heritage of island Hvar, founded two more exhibitions- Naval exhibition ( also situated on the second floor of the palace Biankini) and Ethnographic ( in Petar Hektorovic's Tvrdalj). The founders from Stari Grad looked after the collections but they were formally under the Centre for the protection of cultural heritage of island Hvar.
The Center for Culture of the Stari Grad district was founded in 1995., and among its other culturl activities (librarian activities, organization of cultural events, publishing) the main one was museum activity. In that same year the Archeological collection was founded ( as a result of several years of protective archeological research in the protected city nucleus and the systematical excavations of the complex around the early Christian church of Saint John/Saint Mary, which were lead by experts from the State Administration for the Protection of Cultural Heritage from Split, under the guidance of archeologist dr. Jasna Jelicic Radonic), and a part of the collection was exhibited in the adapted space on the first floor of Biankini Palace under the name “Permanent Collection Faros- ancient Stari Grad”.
In 1996. Hydro archeological collection was founded, whose management was transferred from the Department for Protection of archeological heritage under the Administration for Protection of Cultural Heritage within the Ministry of Culture to the Center for Culture. A team of hydro archeologists of that Department lead by Mario Juri šic, explored the remains of the ancient shipwreck in the cove Duboka, near Basina on the islad Hvar, for three years. The abundant archeological remains were, after desalinization given to the Centre for storage. In 2003. a room in the basements of Palace Biankini was adapted for the setting up of the Permanent exhibition Ancient Shipwreck.
In that same year, 2003., the Center for culture of Stari Grad took over the ownership and managing of the Naval and Ethnographic collection from the remade Museum of Hvar heritage.
In 2006. the process of the conversion of the Center for culture of Stari Grad into the Museum of the city had begun.
On the 22 nd of February, 2007., the City Council of Stari Grad on its 21 st session issued a decree about the conversion of the Center for culture of Stari Grad into the Museum of Stari Grad and with that act the endeavors of the people of Stari Grad that lasted several decades resulted in this final, legal form.
In that same year, a collection of furniture and paintings belonging to the heirs of the Gelineo Bervaldi family was donated to the newly founded Museum. The collection was put up as a permanent exhibition Salon Gelineo Bervaldi in the restored room on the first floor of Biankini palace.
This year the Museum has taken up the managing of the Archaeological Park in the so-called Remeta's Garden, where there are visible arcaeological remains of the ancient Faros.
In the year 2008., after twenty years of having just one expert employee- current head of the Museum, a conservator and an archeologist were hired and with that the Museum of Stari Grad became a small museum establishment run by a skilled team .