FTII is located on the premises of Prabhat Film Company which had made a significant contribution to Marathi and Hindi Cinema in the 1930s and 1940s. A museum for preserving materials of archival value inherited from Prabhat Studios was set up in 1995. The Museum houses all the available artefacts, original contracts and partnership deeds of Prabhat Film Company in addition to costumes, properties, equipment, posters and stills which are historically important. Till now, the Museum was accessible only for VIPs and dignitaries visiting the Institute. However, the Museum is made open daily for general public since 29th February 2008.