The Ethnological Gallery comprises two sections. In the first section, the exhibits depict cultural heritage of Swat region of Pakistan - a blend of Greek, Buddhist and Islamic traditions, presenting a profile of its social and cultural life. The objects on display include garments, jewellery, utensils, furniture and other household objects in addition to examples of the traditional wood carving.

The second section has a collection of textiles from various regions. These textiles represent diversity and range in material, technique, design and usage-cotton, wool, silk and gold fibre-printed, woven and embroidered- belonging to places such as Bangladesh, West Bengal, Benares, Multan, Lahore, Bahawalpur and Hazara. These include unstitched as well as stitched fabrics such as lungis (loin cloth) and bed-covers from Multan, Lahore and Bahawalpur; embroidered phulkaries (a distinctive floral pattern) from Hazara and Punjab; and  appliqué or patch-work, mirror work, muslins and gauzes from Dhaka. Among the masterpieces  are fine cotton and muslin roomals (Scarves) from Chamba, an area in  the hills of  Indian Punjab,  embroidered in double satin stitch with silk thread, so that the picture appears on both sides of the scarf. The embroidery, in brilliant colours, depicts scenes from Hindu religious scriptures mainly revolving around Krishna and Radha; natural environment such as flowers, trees, birds; and geometric designs.

The show cases along the southern wall display terra-cotta figurines coated in brick-red slip or painted in brilliant colours. These interesting models represent various modes of life in different regions of the sub-continent. These models were made by and showcase both craftsmen working independently and those attached with art schools from different places  in the subcontinent.