The Theatre was built on the initiative of members of the Schiller Association, Georg Nieter and Georg Eger, in 1905–1906 according to the design of an architect from Berlin Walter Hentschel in cooperation with an architect from Wrocław Hermann Wahlich. The theatre had the most modern and the largest stage in Wrocław. Its auditorium, which was located on the ground floor and on two balconies, had 1,760 seats – on the ground floor there were seven hundred and sixty seats, on the first balcony – six hundred and on the second one – four hundred seats with lodges on the side of the stage. The auditorium was surrounded with comfortable dressing rooms and a foyer, in which there were buffets and locker rooms.

The theatre was also one of the most modern buildings in Germany at that time regarding fire protection and technical equipment of the stage. In the building of the theatre in Wrocław a reinforced concrete structure was applied for the first time in Europe and it was done by Lolat Eisenbeton A.G. from Wrocław.

There was also modern electric lighting of the stage and auditorium. The stage with a width of twenty six meters and a depth of fourteen and a half meters was separated from the audience with an iron curtain which constituted fire protection. Similarly to Market Hall, modern interior was combined with a traditional architectonic form of elevation – referring to the Art Nouveau style. The theatre was destroyed during theWorld War II and then it was reconstructed according to the design of Andrzej Frydecki, which changed its initial architectonic shape. After the fire in 1994 the building was fundamentally reconstructed according to the design of Wiktor Jackiewicz.