The Royal Theatre opened in 1913 as a privately built and operated roadhouse. It has seen many of this century's great performers on its stage, including Sarah Bernhardt, Carlos Montoya, Mikhail Baryshnikov and Luciano Pavarotti, in spite of having been used in part as a cinema from 1917 until 1981. The Royal Theatre was designated a site of national historic significance in 1987, and received a commemorative plaque from the Historic Sites and Monuments Board of Canada in 1990. The original foyer has been augmented by lobby extensions completed in 1991, while the auditorium retains its original Rococo/Renaissance Revival style decor. Extensive technical upgrades, restoration work to the auditorium, and refurbishment of the dressing rooms took place in 2002. The award winning exterior renovations were completed in 2006.

The Royal is home to the Victoria Symphony and Pacific Opera Victoria, as well as being Vancouver Island's premiere venue for touring attractions.

The Royal Theatre operates as a licensee/rental venue, under the administration of the Royal & McPherson Theatres Society.