The Allen Elizabethan Theatre has evolved since the founding of the Oregon Shakespeare Festival when the first performance of Twelfth Night was presented on July 2, 1935.

The design for the first outdoor OSF Elizabethan Theatre was sketched by Angus L. Bowmer based on his recollection of productions at the University of Washington in which he had acted while a student.

Ashland, Oregon obtained WPA funds in 1935 to build it within the 12-foot (3.7 m) circular walls that remained in the roofless shell of the abandoned Chautauqua theatre.

Bowmer extended the walls to reduce the stage width to fifty-five feet, and painted the extensions to resemble half-timbered buildings.

Just before each performance, an actor opens the gable window, and in keeping with Elizabethan tradition signaling a play in progress, runs a flag up the pole to the sound of a trumpet and doffs his cap to the audience.

It houses a control room, and audience services including rental of infrared hearing devices, blankets, pillows, and food and drink, both of which are allowed in the auditorium.