On 20 July 2002, a new exhibition building opened at Skógar Museum: the Museum of Transport, which explores the history of transport, communications and technology in Iceland in the 19th and 20th centuries.

The Museum of Transport collects, conserves and exhibits objects relating to the development of transport in Iceland. I addition to a collection of vehicles and means of transport, the museum includes an exhibition focussing on transport at different periods, and how it developed.

This includes riding gear, engines from the early days of motor transport and motor boats, vintage cars, roadbuilding equipment and tools, old motorcycles and much more. The exhibition also explores the development of postal services, electrification and telecommunications.

The Museum of Transport includes a café and a museum shop.
The Museum of Transport has been created by Skógar Museum in collaboration with the National Museum of Iceland, the Public Roads Administration, Iceland Post and RARIK – Iceland State Electricity, all of which have contributed objects to the collection.

The new museum is located in a new 1,510 m² building of glued laminated timber, which stands to the east of the main museum building at Skógar. It was designed by architects Birgir Teitsson and Egill Guðmundsson of Arkís. Engineering design was by engineer Haukur Ásgeirsson of Ístak, and the exhibition was designed by Björn G. Björnsson of List og saga