The Danzanravjaa Museum was established in 1991 in honour of the fifth Goviin Dogshin Noyon Khutagt ("Terrible Noble Saint of the Gobi"), one of the greatest and most unusual intellectuals in Mongolian history. The museum preserves and displays Danzanravjaa's original artistic works and literary manuscripts, along with his books, religious items, theatrical costumes, personal possessions, and similar objects illustrating his life and work.
Upon Danzanravjaa's death in 1856, his disciple Sh. Balchinchoijoo (Ishlodon) assumed the role of takhilch, or curator or the objects associated with Danzanravjaa's life. This curatorship was passed on within the same family for a further five generations until the religious purge of 1938, when orders were given to destroy Khamar Monastery and all of its contents. The curator at the time, G.Tudev, secretly took action to rescue the objects of Danzanravjaa's legacy before their destruction could take place. Entering the monastery surreptitiously each night, he packed and removed crates full of books, theatrical costumes, artworks, and religious and personal items used by the Noyon Khutagt, ultimately saving 64 wooden chests-out of a total of 1500. He secretly buried these crates in various locations in the vicinity of Khamar Monastery. The crates remained hidden until 1990 when, with end of socialist rule in Mongolia, Tudev's grandson Altangerel dug up the objects and founded the Danzanravjaa Museum.