In 1991, not long after commercial operations ceased, the Lacombe & District Historical Society began looking into purchasing the shop and restoring for use as a museum. After 2 years of fundraising, the shop was bought by the LDHS and restorations began during the summer of 1993. The foundation, interior and exterior walls, and the roof were repaired and the sliding doors at the front of the shop were restored. The Blacksmith Shop Museum officially opened on July 16, 1994 as part of Lacombe Days celebrations. In 2011, the Blacksmith Shop Museum became a designated Provincial Historic Resource as the Oldest Blacksmith Shop in Alberta on its original location. In 2015 it was designated as a Municipal Historic Resource, and is now a popular attraction where museum guests can watch live demonstrations or enrol in blacksmithing classes.

With financial support from the Alberta Historical Resource Foundation, Echo Lacombe Association & the City of Lacombe Heritage Resource Committee, in 2019 the Lacombe & District Historical Society funded conservation and restoration work to the Lacombe Blacksmith Shop. Denzil Paterson of Central Valley Furniture dismantled and repaired all of the original wooden windows, did some minor repairs to two of them, made new storm windows to replace the existing plexiglass over the windows, repaired flashing above doors, and repainted all of the exterior woodwork including all doors and signage.

Pending Provincial Grant approval, in 2021 work to the buildings envelop, including roof and siding repairs, will be completed by Central Valley Furniture. Repair work and servicing of the two original trip-hammers and antique engine are also planned.