The Puppet Museum is located in the Convent das Bernardas, a building classified as National Heritage. The convent was founded in 1653, in the reign of king João IV.
The 1755 earthquake almost completely destroyed it resulting in its complete rebuilding. In 1834, as a result of the abolition of Religious Orders, the building was sold to private interests. It has been used for various purposes; a school, a cinema and an orchestral hall before being totally converted to apartments. In 1998, with the building in a terribly run down state, the Lisbon City Council purchased it and got on with its restoration.
Within the building, there are the 34 rehoused families along with various other services such as the Puppet Museum, retail space, a restaurant and a neighbourhood collective.