The Škofja Loka Museum is housed in the Škofja Loka Castle, whose imposing exterior dominates the town below. The Museum's archaeology, history, cultural history, art, ethnology, natural history and sports collections, as well as an open-air museum present the cultural heritage of the Škofja Loka area.

One of the Museum's focuses are exhibitions - the castle houses the Castle Gallery, and two other galleries are located in the town centre, namely the Ivan Grohar Gallery in Mestni Trg and the France Mihelič Gallery in a former granary in Spodnji Trg. The Museum's collections are also on display at the Cankar Batallion House (Dom Cankarjevega bataljona) in Dražgoše, at the Visoko Mansion in Visoko, Poljane Valley, and at the Brode Beekeepers' House in Brode near Škofja Loka.