In April 1871, the brothers John and Michael Gunn obtained a 21-year licence to establish "a well-regulated theatre and therein at all times publicly to act, represent or perform any interlude, tragedy, comedy, prelude, opera, burletta, play, farce or pantomime".

[citation needed] In favour of the Gunn's licence application was that, unlike the existing theatres, they were not proposing to promote local drama which had acquired something of a reputation with the Dublin Castle administration for stirring up nationalist sentiments.

The design included tip-up seats (an innovative way of increasing the audience capacity) and fire-safety features such as a 4” water main (for firefighting) and stone (not wooden) staircases.

[7] The Gaiety was opened on 27 November 1871,[8] with the Lord Lieutenant of Ireland as guest of honour for a double bill which included the comedy She Stoops to Conquer and a burlesque version of La Belle Sauvage.

[13] These handprints include those of Luciano Pavarotti, Brendan Grace, Maureen Potter, Twink, John B Keane, Anna Manahan, Niall Toibin and Brian Friel.

Irish entertainer June Rodgers starred in the Gaiety pantomime for years, until she began to headline the equally established Olympia Theatre panto.