Directorate of Handicrafts & Handloom, Gangtok, Sikkim was established in 1957. It is also known as the Government Institute of Cottage Industries (GICI). The museum was founded during the reign of the Chogyals of Sikkim, with the intention to preserve and promote the art and craft skills of the local artisans.
The museum is an authentic warehouse of traditional handicraft and handloom. It houses handwoven carpets with traditional motifs, blankets, shawls (in Lepcha weaves), graceful 'choktse', 'thangka' paintings, hand-painted masks, dolls, and many other objects. The carpets so produced at the museum have amazing design and fine texture ranging from stylish contemporary patterns to the traditional ones. Besides carpets, the exclusive handmade paper is another specialty which is made from the bark of algeri tree.