Modi went around the museum that houses neat rows of terracotta sculptures depicting the armies of Qin Shi Huang, the first emperor of China.
The museum has a collection of over 8,000 life-size clay warriors.
Modi, attired in a white kurta-churidar with a colourful shawl draped around his shoulder, went around the museum and listened attentively to the guide.
Xi'an is the capital of Shaanxi province and the hometown of President Xi Jinping. Modi and Xi are to scheduled to hold their summit meeting later.
Xi'an is also associated with Chinese traveller and famous Buddhist scholar Xuan Zang or Hieun Tsang who travelled extensively in India in 629 to 645 AD.
Modi was earlier accorded a colourful welcome at the airport on arrival.