The Kastoria Folklore Museum is housed in one of the city’s loveliest and oldest town houses, the Nerandzis-Aïvazis residence by the lake. The museum has been operating since 1972 and is run by Harmony, a music and literary society. The two-storey premises were built in the 16^th or 17^th century and survive in such good condition that the museum was able to open without the need for any restoration work. All the original furniture is still there.

On the ground floor, there are three cellars: one, the wine cellar, contains the wine press, the wine barrels, and baskets for the grapes; another was where pickles, oil, olives, preserves, butter, and cheese were stored; and the third contained cereals, pulses, and flour. It was here that pies and bread were made. Wood and coal for heating were also kept on the ground floor. And in the courtyard are the well, the boat shelter, and the kitchen.

There are two family living rooms on the first floor, one for summer and one for winter, the former also being used as a fur workshop. It contains the first sewing machine for furs, which came from France in 1884. On the second floor there are two bedrooms, one for the husband and wife and one for the children, a small sitting-room, and a large sitting-room, which was the main reception room. The latter was used on festivals and holidays. It contains a suite of furniture with the traditional places for the hosts, the Metropolitan, and the Turkish dignitaries, and in the jetty are low tables for the other guests. Above the bedrooms is a balcony, whence the unmarried women could observe the official ceremonies and celebrations in the house. On this floor there is also a lavatory with a secret passageway out of the house, whch was useful in emergencies.