The theatre's history dates back to 1918, when Marian Dąbrowski, publisher and editor of Kraków's "Ilustrowany Kurier Codzienny" (English: Illustrated Daily Courier, commonly known as IKC, also Ikac) initiated the creation of the stage.

A fire that broke out the night of 6/7 April 1928 completely destroyed the interior.

Since 1949 it has been home to the Państwowy Teatr Młodego Widza (English: State Theatre of the Young Viewer).

The theatre returned to being called Bagatela in 1970, and was dedicated to the memory of Tadeusz Boy-Żeleński in 1972.

[5] The theatre was originally designed for children but nowadays shows musicals, comedies and other light entertainments suitable for families.