The fire caused panic throughout the theatre, with 186 people dying from a combination of the direct effects of smoke and flame, crushing and trampling, and trauma injuries from falling or jumping from the roof and balconies.

Most of the dead were in the gallery of the theatre, which had only a single exit with several design flaws, and quickly became clogged with people trying to escape.

[8] In his letter accompanying the plans to the Corporation Surveyor of Exeter City Council, Phipps directly states that the building met all the rules and requirements laid out: ...the theatre is designed in accordance with the rules and regulations of the Board of Works under the Act of 1878 and of the Lord Chamberlain – and having constructed some 40 theatres, I bring a somewhat large experience to bear on this subjectDuring the licensing inspection, the magistrates noted several deficiencies, which were ordered to be rectified, including installing an additional exit for the audience from the boxes, stalls, and pit, widening the exits to at least 6 feet (1.8 m), changing some single leaf exit doors to double doors, and supplying 80 feet (24 m) of hose for each hydrant (of which there were only two – one in the foyer and one in the "prompts" in front of the stage),[3] rather than 40 feet (12 m) which had been provided.

[3] The disaster occurred on 5 September 1887,[5] the opening night of the touring production of the melodrama The Romany Rye written by George Robert Sims, performed by the company of Gilbert Elliott[9] and produced by Wilson Barrett.

[6] Upon seeing this, Taylor then ran across the gantry and released the "drop-scene" (a painting of Warwick Castle by Walter Johnson[2]) towards the front of the stage, temporarily isolating the fire from the auditorium, and before the audience had noticed anything wrong.

[4][6] The drop-scene covered the stage whilst the actor playing the part of Scragger was in the middle of speaking a line,[3] and people in the theatre initially laughed, thinking there was a technical 'first-night' glitch in the performance.

[6] The escape of the cast and crew meant the stage doors were opened, and this provided a draft that fanned the flames, and caused the drop scene – which had sheltered the audience to that point – to first bulge out, and then ignite.

[6] Less fortunate were patrons in the pit area, where heavy crushing occurred from the movement of the crowd, and multiple lives were lost.

[3] A number of people were on the roof awaiting rescue, but the city's wheeled ladder was delayed in arriving from the Guildhall as it was chained up for security, and the keyholder could not be located for some twenty minutes.

A group of rescuers, including soldier Driver George Cooper, and sailor Seaman William Hunt,[16][17] climbed over a small roof and broke a window, pulling several people to safety.

[6] Soldier Bombardier Frank Scattergood rescued a number of people from the building, including a child extra whom he found alone and terrified on the stage, before being overcome by smoke.

[3] The landlord of the nearby New London Inn, Robert Pople, responded at the first alarm, bringing five or six ladders which saved many people,[16] and then opened his premises, using the pub to shelter the survivors, and laying out victims in the stables.

[19] The police also attended, with a Constable Ching being noted for making a number of successful rescue efforts into the building with a handkerchief over his mouth.

[4] Large local fabric retailer Colsons sent its entire stock of calico to the inn to help wrap the bodies of the dead.

[22] By the 9 September, only four days after the disaster, the committee had made interim awards to 17 cases who were in immediate need, making weekly instalment payments.

[22] In order to care for all of the orphans left by the fire, it was calculated that between ten and twenty thousand pounds would be required, which the committee felt it would be impossible to raise locally.

[22] At the recommendation of the Relief Committee, the Exeter Town Clerk sent letters, including to the Lord Mayor of London, and the appeal went national.

[26] The majority of the dead were interred in the same mass grave, prepared for the purpose at Higher Cemetery,[27] although due to site restrictions, only four coffins could be brought at once.

[28] Adjacent to the main memorial is a separate headstone to Bombardier F Scattergood "who striving to save the lives of others, lost his own at the burning of Exeter Theatre".

A number of parts survived, although smoke and water damaged, including most of the dressing rooms, the foyer, and the upper circle bar.

[5] This meant following the "Irving Safety Theatre" principles, These principles included making the theatre site isolated, dividing the auditorium from the back of house, a minimum height above street level for any part of the audience, providing two separate exits for every section of the audience, improved stage construction including a smoke flue, and fire-resistant construction throughout.

[4] As the electricity grid was not yet reliable enough in Exeter to ensure the uninterrupted use of the lights, Robert Pople, the owner of the New London Inn who had helped so much on the night of the fire, agreed to the placement of a generator for a number of months in his stable yard.

[6] The licensing magistrates were criticised for issuing a licence when requirements from their first inspection had not been met (such as the safety curtain), and because they were aware that there was only a single exit from the gallery.

Phipps was further criticised for the design, including the roof over the gallery being too low, meaning that people had little chance to escape before smoke overcame them.

There was a large contribution from the architect, but Shaw gave the largest blame to the licensing magistrates, as they had passed Phipps' substandard work as being fit-for-purpose.

[14] On 28 October, the police Chief Constable, Captain Edward Shower presented his list of equipment and staff for the new brigade to the council, but turned down the position of supervising the service.

[3] Herberte-Basing, who was not present on the night, being at home in Ilfracombe,[3] was ordered to attend court on 18 October to face charges of breaching the magistrates' licensing rules.

[3][42] Mr Sparkes, for the defence, contended that the court had no jurisdiction to charge Herberte-Basing, as the relevant statute did not specify any penalties for non-compliance for some of the rule breaches, except for the refusal of a licence.

[4] Jimmie Lewin was awarded a certificate by the Royal Society for the Protection of Life from Fire for his courageous actions in helping pass both the living and dead through a window to the balcony.

Following the fire at Exeter, and the damning inquest and inquiry, Aberdeen magistrates immediately engaged three independent surveyors to inspect the building, and refused to grant a licence until major structural changes were made, in line with the recommendations of Eyre Shaw.