In February 1938, Shusha State Kolkhoz and Sovkhoz Theatre was established. In 1943, the collective was renamed the Shusha State Musical Drama Theatre named after Uzeyir Hajibeyov. Shusha Musical Drama Theater ceased its activities in early 1949. By the decision of the Cabinet of Ministers of the Republic of Azerbaijan, Ministry of Culture restored the activity of Shusha State Musical Drama Theater. In 1992, the theater moved to Baku due to the war in Karabakh and settled in the building of Theatre of Young Spectators (1992–2005). Then the theatre operated in the building of "Savalan" cinema in Baku (from 2005 to 2014).