Laidhay Croft, which comprises 16 acres of arable together with rights over 15 acres of rough grazing, came into the the possession of the Bethune family in 1842 and remained with them until 1968. William (Beil) was the last to live here.

In 1969 the building came up for sale and was purchased by Malcolm Cameron. It was also about this time that Mr Bert Mowat, proprietor of the Portland Arms Hotel, Lybster, made the suggestion that the croft should be restored as a museum. In 1970 the Laidhay Trust was set up with the building finally opening to the public in 1974.