"Los Angeles has wanted a museum for motion pictures, where we make motion pictures, and finally that dream will be a reality," said Academy CEO Dawn Hudson.
Donors gathered Thursday night to celebrate and enjoy a preview of some of the museum's exhibitions.
Much of the building's original design will be preserved, but the new 300,000-square foot facility will include a state-of-the-art theater housed in a soaring spherical addition.
The museum's six levels of exhibits will include interactive displays and costumes from popular films. It will also be filled with treasures from the Academy's archives, like the piano from Rick's Café from the movie "Casablanca" and the dazzling ruby slippers from "The Wizard of Oz."
More than half of the $300 million in funding for the new museum has already been raised.
"It will be great for the community of L.A., the people who live here and the people who visit here, and wonderful for the people who will visit this museum and get an opportunity to really immerse themselves in the history and the art of movie making," said Disney CEO Bob Iger.