This case study assesses the strategies of the Museum of Lisbon as well as the related policies of Lisbon City Council to support local development. Through its five branches located across the city and its diverse partnerships with local stakeholders, the Museum of Lisbon has cemented its role as a community anchor institution. This case study focuses on the five dimensions featured in the OECD-ICOM Guide for Local Governments, Communities and Museums, namely the role of museums in: i) economic development, ii) urban regeneration, iii) education and creativity, iv) inclusion, health and well-being, and on iv) ways to mainstream the role of museums in local development.