In contemporary museological practice, national museums play a critical role in shaping collective memory, particularly regarding histories of migration, racial trauma, and labor. However, limited attention has been paid to how curatorial strategies influence the framing and erasure. Of diasporic histories across different political contexts. Purpose: This study aimed to examine how Chinese and Australian museums construct, marginalize, and regulate traumatic memory related to the Chinese labor diaspora, using spatial, linguistic, and material strategies. Method: A qualitative research design was employed, incorporating critical discourse analysis, spatial ethnography, and guestbook response analysis. Data were gathered from two museums, 12 curator interviews, and 1,847 guestbook entries (2019–2023). NVivo software was used for thematic coding, while field notes and spatial data were analyzed ethnographically. Findings: Results revealed that anti-Chinese artifacts received 12% less visitor engagement due to peripheral placement. Lexical laundering reframed violence as "cultural tension" in 78% of updated labels. Guestbook analysis showed 45% of visitors expressed negotiated readings and 17% oppositional interpretations, especially among diasporic respondents. Implications: The findings emphasize the urgent need for inclusive curatorial practices that resist historical sanitization and foster spaces for community-led counter-memory.