The collection of articles of regimental historical interest started at the Sherwood Foresters Regimental Depot in Normanton Barracks, Derby, with the aim of instructing recruits in regimental history.  However, it was not until 1928 that a collecting policy was formally established with the formation of a Regimental Historical Fund and governing committee.

The Collection grew over the years and remained in the Depot until the barracks closed in 1963.  Following a period in store, an agreement was made with Nottingham City Council for its display in Nottingham Castle where it has remained ever since. The Museum is a registered charity (No 1001226) and has 14 trustees (ex-officio, Individual and Nominated) who include Lord Lieutenants, County and City Councillors and serving and former members of the Regiment.  There is one full time member of staff, the Curator, now employed by the Museum, under Grant in Aid funding from the MOD. The Curator is a qualified Museum professional who oversees the day to day running of the Museum. This Grant in Aid, is due to be removed in 2030, leaving a gap in the museum’s finances which the trustees expect to plug in part by growing the charity’s endowment. 

The museum also has a second gallery in Derby Museum, which is shared with two other Regiments.  The Archives and Reserve Collection are held in Foresters House, Chilwell from where the Museum is managed. The Mercian Regiment formed in 2007 from the amalgamation of three other Regiments: The 22nd Cheshire Regiment, The Worcestershire & Sherwood Foresters (WFR) and The Staffordshire Regiment. As a result in in 2012, in line with the current army organisation (and relevance to the modern army) the museum changed its name to Museum of the Mercian Regiment (WFR Collection). Since the regiments formation it has deployed all over the world and due to its involvement in Afghanistan is one of the most experienced regiments in the British Army.