Built above the ruins of Naniwa Palace (c 650), visible through the basement floor, this museum houses dramatically illuminated recreations of the old city and life-sized figures in the former palace court. There are also interesting early-20th-century displays, and great views of Osaka-jō. English explanations are pretty sparse, so rent an English-language audio guide (¥200).
The museum is just southwest of the castle park, in a sail-shaped building adjoining the NHK Broadcast Center.