The Phalke memorial is being built by the Nashik Municipal Corporation at an estimated cost of Rs 9.27 crore. The memorial will include a mini-theatre, an exhibition hall and a museum. It will be located at the foothill of the Pandav Leni caves along the Mumbai-Agra national highway, about 10 km from Nashik city.

Out of the 29.5 acres of land handed over by the State Government to the NMC for the memorial, five acres have been granted for a Buddha memorial. The local unit of the Republican Party of India had spearheaded protests in the past against the creation of the Phalke memorial at the site, stating that it would damage the sanctity of the Buddhist sculptures.