The Shanxi Arts Museum is located in the northwest of Wuyi Square in Taiyuan and it was founded on Chunyang Palace built in the Ming Dynasty (1368-1644). The palace is also known as the Temple of Ancestor Lyu, which enshrines and worships Lyu Dongbin, a noted Taoist priest in the Tang Dynasty (618-907).

The palace covers an area of 10,000 square meters. Main architecture in the palace includes a wood memorial archway, a hall, a pavilion and caves. 

It is a Taoist temple and also has the characteristics of classical gardens. It breaks the grand and solemn style of official-style architectural layout in northern China and can be said to be an excellent ancient building.

The Shanxi Arts Museum is a thematic display museum that aims to collect, study and exhibit ancient and modern artworks. It allows visitors to get leisure and increase their historical knowledge.

It was announced as Shanxi's important culture relic protection site in 1996 and it is also among the seven national culture relic protection sites.