The Islamic Museum summarizes the history of the Muslim people. The museum is located near the entrance to the Western Wall, and is near both the Al-Aqsa Mosque and the Dome of the Rock. The museum shows the history of Islam both as a religion, and as an empire. In fact, the Islamic Museum used to be a mosque itself and was then turned into a place to educate visitors about Islam.
Rare artifacts are kept in the museum including ancient texts from the Koran, pottery, and a variety of unique swords and daggers.
Entrance into the museum is purchased with a combination ticket for the Al-Aqsa Mosque and the Dome of the Rock. Both of the mosques and the museum may only be reached through one gate that is reserved for tourists.
Sources: Frommer's Israel