It is located on the southern side of Frourio Hill in Larissa and it is a registered trademark of the city.

During the first centuries, the theatre was used for two purposes: in addition to theatrical performances, it also hosted the meetings of the highest regional authority, the so-called Koinon of Thessaly.

The ancient theatre was initially associated with the worship of the god Dionysus and the performance of theatrical and musical activities, and later with the administration of the koinon for the meetings of the city assembly, which was called agora.

The koilon of the ancient theatre was formed by the slope of Frourio hill, which was shaped into terraces for the placement of the seats.

During the reign of the emperor Augustus and his successor Tiberius, inscriptions on their honor were found on the brims of the stage.