The Olha Kobylianska Literary-Memorial Museum was opened on November 27, 1944 – on the writer's birthday – in the house at 5 S. Okunevska Street, a cozy street, where she lived from May 1929 until her death on March 21, 1942, in accordance with Resolution No. 1134 of the Council of People's Commissars of the Ukrainian SSR dated September 4, 1944.

The museum's exhibition is located in five halls. Three halls highlight Olha Kobylianska's life and creative path, her literary connections, and the commemoration of the writer in Ukraine and abroad. In the memorial rooms – the study and the bedroom – everything is presented as it was during her lifetime. Olha Kobylianska's personal belongings are exhibited there, and the furniture she used is displayed. The courtyard and a small garden near the museum premises are also memorial.

Subsequently, the Olha Kobylianska Literary-Memorial Museum was transformed into a branch of the Chernivtsi Museum of Local Lore (Order No. 378 of the Chernivtsi Regional Department of Culture dated November 25, 1962).

Olena Kononivna Kovalenko (1944–1982) was the first director of the museum; from 1982 to 1986, Vasyl Havrylovych Melnyk headed the institution. Currently, the museum is headed by Volodymyr Oksentiiovych Vozniuk.

O. K. Kovalenko appointed the writer's adopted daughter, Olena Oleksandrivna Panchuk-Kobylianska, and her husband, Elpidefor Matviiovych Panchuk, as museum research fellows, who played a significant role in the creation of the museum's exhibition and the formation of its collections.

The museum's current exhibition has been in place since 1983, created according to a thematic and exposition plan developed by the institution's staff and artistically conceived by Honored Artist of Ukraine Ivan Dmytrovych Balan. In 2013, the exhibition was updated and supplemented.

Museum staff have authored significant research on Olha Kobylianska's life and creative path: E. M. Panchuk, "Mountain Eagle. Memoirs" (1976), and the novel-essay "Kobylianska" (1983); V. A. Vozniuk, "About Olha Kobylianska. New Materials. Reflections. Finds" (1982), and "Bukovina Addresses of Olha Kobylianska" (2006). The text of Olha Kobylianska's diaries and notes, published in the book "Words of a Touched Heart: Diaries; Autobiographies; Letters; Articles and Memoirs" (1982), were prepared for publication; work is underway on the publication of the complete collection of Olha Kobylianska's works in 10 volumes, initiated in 2013. Several guides to the museum's exhibition have been published. The latest edition is a Ukrainian-English one from 2018.

The museum's collections are replenished annually and currently number over 4,000 items. Over the years of the institution's existence, hundreds of thousands of visitors from various regions of Ukraine and abroad have visited it.

In accordance with the plan drawn up by the writer's father, Yu. Ya. Kobylianskyi, at the end of the 19th century, the Kobylianskyi family home in Dymka was rebuilt during 1970–1971. On June 28, 1973, the O. Kobylianska Museum was opened there, with the dominant exhibition theme being "Dymka in the life and work of O. Kobylianska." In the museum, according to descriptions by O. Kobylianska's relatives, the writer's memorial room has been recreated.