The time capsule, which was 118 years old, was found by Manx Demolition near the grounds of Henry Bloom Noble School.
Discovered sealed in wax and wrapped in lead, the time capsule was found beneath one of the school’s foundation stones.
Staff at Manx National Heritage could quickly reveal the contents of the unopened time capsule using digitised newspaper collections on iMuseum, which were documented in a Mona’s Herald newspaper, together with the foundation stone laying ceremony on November 22, 1905.
Rachel Ashley, headteacher at Henry Bloom Noble School, said: ‘The staff and pupils at Henry Bloom Noble School were excited and surprised when we were told that the builders at the Ballacloan School site had found a time capsule from over 100 years ago.
‘We were delighted to be able to look at it and to find out from the old newspapers what was inside.
‘It is in very good condition and we enjoyed talking about it in assembly.
‘We are pleased to donate in to the Manx Museum so others can find out about it.’
Ballacloan, on Demesne Road, was the home of an infants’ school that became Henry Bloom Noble School a few years ago. It was demolished recently.
Anthea Young, education officer for Manx National Heritage, added: ‘It was delightful to be met and so warmly welcomed by the children and staff of the existing Henry Bloom Noble School.
‘The children were very excited to share their fabulous thoughts about the discovery of this very unusual object in their school.’