The Living Art Museum or Nýló as the museum is called in everyday speech, was founded in 1978 by a group of artists and is therefore one of the oldest museums and exhibition spaces in Europe under the supervision of artists. The Living Art Museum has been one of the main venues for contemporary art in Iceland and has a unique collection of works by Icelandic and international artists from the 1960s to the present day.

The Living Art Museum's exhibitions began in the early 1980s, and many exhibitions have marked time limits in Icelandic art history. Every year, the museum presents a strong exhibition program as well as being a venue for various events, museum education and research, in close collaboration with artists, curators, scholars and the general public. 

The Living Art Museum's collection includes over 2,200 works donated by artists, representatives, collectors and individuals associated with the museum. Today, Nýló's collection reflects the main movements in contemporary art and the museum's interest in asking and answering current questions.