The Museum of Islay Life is managed by the Islay Museums Trust and has as its principal aim the conservation and display of items illustrative of life in Islay, from prehistoric to recent times. The Trust was formed in 1976 by the Islay Historic Works Group and the Natural History and Antiquarian Society of Islay. A Management Committee, of Trustees and other interested islanders, set about finding a suitable building and bringing together items to put in it. The Museum building is the former Free Church in Port Charlotte. It had ceased to be used as a place of worship in 1929 and had become a delapidated ruin. However, it was purchased for a nominal sum and restored with the aid of grants, and the Museum opened its doors to the public in 1977.

In 1980, the Museum was awarded the prestigious Museum of the Year Award, and received a further Special Award in 1985. In 1998, it received a share of the Kintore Conservation Award.