Beginning in 1910, Heron staged plays by authors from Carmel-by-the-Sea, California, with local residents as performers, under the name Forest Theater Society.

He approached James Franklin Devendorf, co-founder of the Carmel Development Company, and obtained permission to use the space rent-free.

[4] The first theatrical production, David, a six-act biblical drama written by Constance Lindsay Skinner, under the direction of Garnet Holme of Berkeley, inaugurated the Forest Theater on July 9, 1910.

That year, the first children's play was staged at Forest Theater, Alice in Wonderland, adapted by Newberry and painter Arthur Honywood Vachell.

Joseph Hand had his farewell appearance on August 7, 1915, in the play The Man from Home, by Harry Leon Wilson and Booth Tarkington.

[13] In 1916 two of the productions were Yolanda of Cyprus and The Piper, for which the scenery was painted by Carmel artists William Frederic Ritschel and Laura W. Maxwell, who also appeared in the plays.

[14] Other notable artists acted at, or designed sets for, the theater include Frederick R. Bechdolt, Josephine M. Culbertson, Xavier Martinez, Jo Mora, Ira Mallory Remsen and Herman Rosse.

In 1937, the Club decided to deed the theater to the City of Carmel-by-the-Sea to obtain WPA funds for major renovations, with the stipulation that the facility would be a public park and continue to offer outdoor performances.

[27] In 1937, the property was deeded to the City of Carmel-by-the-Sea to qualify for federal funding, and in 1939 the site became a Works Progress Administration (WPA) project.

Formed in 1960 by Marcia Hovick to develop "creative confidence" through theatre training, CET had been using space at the Golden Bough Playhouse and Sunset Center, and needed a permanent place for their activities.

In 1971, a second Forest Theater Guild was established by Cole Weston, and the group began producing summer musicals and community plays on the outdoor stage.

[36] To raise needed funds and draw attention to the possible closure, the new group produced a staged reading of Robinson Jeffers' Medea and The Tower Beyond Tragedy, which featured actress Dame Judith Anderson.

[37] Mayor Gunnar Norberg and Weston, recognizing the theater's cultural significance and historical value, rallied the community to a preserve the theatre.

[38] In 1972, to raise funds for the Theater's preservation, Norberg and Weston staged their first full production of William Shakespeare's Twelfth Night.

[42] Meanwhile, over the last decades of the 20th century, the Forest Theater Guild produced over 20 plays, including Moon for the Misbegotten and Long Day's Journey into Night.

[48] In January 2015, anticipating delays in the renovations, the city announced that the reopening of the theatre would be postponed until 2016, and the theater companies cancelled their upcoming seasons.

[54] In early 2022, the city of Carmel entered into a lease with Pacific Repertory Theatre for the nonprofit to manage the venue for the next five years, with a five-year renewal option.