It was built on a site next to the Ness river and incorporated the gothic Bishop's Palace residence (from which it took its name) into a new building designed by architects Law Dunbar and Naismith.

A theatre originally built as an Opera House, with full stage facilities, by the name of The Playhouse also existed in Inverness situated on Academy Street, in the town centre.

The Playhouse staged occasional shows but was principally a cinema seating 1429, and had a proscenium opening of 45 feet (14 metres), but the only opera ever presented there was by the local Amateur Operatic Society after the Empire Theatre was demolished.

Andy Stewart used to put on his show there, as well as at other CAC venues all over Scotland including the Lyceum at Dumfries, and the Playhouse in Perth.

Eden Court reopened in November 2007, having undergone a complete refurbishment and extension by Robertson Construction and Page\Park Architects.

The refurbished theatre also includes the Jim Love Studio, named after the late Inverness Courier editor.