The Lao She Memorial is located in the No. 19 Courtyard, Fengfu Hutong, West Dengshikou Street, Dongcheng District, Beijing; it was built on the site of Lao She's former residence. No. 19 Courtyard at Fengfu Hutong is a traditional quadrangle home ( a compound with houses around a courtyard), which was purchased by Lao She when he returned from America in 1950; for 16 years, he lived and wrote all his post-liberation works here. They include Longxu Slum, Teahouse and Beneath the Red Flag. In May, 1984 Lao She Residence was rated as a municipal cultural heritage protection site by the Beijing People's Government. February 1st, 1999 marked the 100th anniversary of Lao She and also witnessed the completion of Lao She Memorial and its official opening to the public.

The basic objectives of the Lao She Memorial are to protect the former residence and Lao She's collected works, collect and study Lao She's works and documents, organize exhibitions and activities, and carry out widespread social education. Centering on the theme of ¡°Lao She born in Beijing, lived in Beijing, died in Beijing and wrote in Beijing his whole life¡±, the Memorial has held many temporary exhibitions specifically for middle and primary school students. The easy-to-use touch screen computers make these exhibitions vivid and interesting.