Vilnius Old Town Theatre was founded in 1989. Its founder is Vladas Limantas, the person who has founded Vilnius University Yard Theatre and who headed it for long years. The University Theatre has revitalised one of the oldest theatre traditions in Lithuania the Baroque School-University Theatre. The School-University Theatre flourished during the 16-17th centuries and has prepared the soil for the emergence of Vilnius Town Public Theatre.

In year 1995 the core of the theatre came to be the graduates of Vilnius University actors – Lithuanian Language specialists (Vladas Limantas and Alge Savickaite course), later, in 1998 they were joined by a few students of Jonas Vaitkus actor – singer speciality course. During 1996 - 2005 m. Vilnius Old Town Theatre was headed by stage director Valdas Pranulis, since 2005 - by Laima Trainaviciene.

Theatre specialises in arranging actions and performances in non-traditional spaces: streets, squares, churches, castles, parks, natural landscape and the locations where the spectators are most close. The Theatre participates annually at the traditional feasts of the town, arranges humoristic streets actions, dealing with the urgent social and moral problems. Vilnius Old Town Theatre is renowned for street actions, which as a rule target the persons, who due to certain reasons do not attend theatre at all or pay very seldom visits.