To further promote Chinese tea culture, Dr K.S. Lo suggested to build a tea gallery by the Flagstaff House Museum of Tea Ware in 1992. A venue for regular tea demonstrations and events, the tea gallery could promote Chinese tea heritage and offer both local and overseas visitors a chance to appreciate the cultural essence of China. In 1994, the K.S. Lo Foundation generously donated 25 pieces of rare ceramic ware and more than 600 seals owned by Dr Lo to the Urban Council again. This contribution facilitated the establishment of the K.S. Lo Gallery.

The design of the gallery was discussed at length and a number of changes were made after several deliberations between Dr Lo and the Government. The exterior matched the Greek Revival architectural style of Flagstaff House as much as possible, while interior installations and fittings like doors, windows, furniture and exhibition counters were rich in Chinese character. The gallery is a two-storey structure. The exhibition hall on the upper level showcases precious ceramic antiques donated by Dr Lo, dating from the Song, Yuan and Ming dynasties, as well as Chinese seals from the Ming, Qing dynasties and modern times. The lower level is a Chinese tea room where visitors can enjoy Chinese tea and tea demonstrations.

The K.S. Lo Gallery, an extension of the Flagstaff House Museum of Tea Ware, with a gross area of 600 square metres, was officially opened to the public on 14 December 1995 for holding various functions such as art lectures, demonstrations, education and extension activities related to Chinese tea drinking and other Chinese art forms. Other than selling tea and food, Lock Cha Tea House inside the K.S. Lo Gallery has regularly organised various types of tea demonstration and music gathering, to let citizens have a deeper understanding of Chinese tea culture.