Like in many other princely residence towns, the roots of Coburg's theatre lie with the local ruling family.

Duke Albrecht, inspired by his wife Marie Elisabeth established a theatre hall in the Zeughaus [de] (armoury) building.

In 1764, Duke Ernst Friedrich established another theatre, in the former Ballhaus (today the location of the Arkaden [de]), but no continuous stage work ensued.

Only in 1827, when Duke Ernst I founded the Herzoglich-Sächsisches Hoftheater (ducal Saxon court theatre) was a permanent theatrical ensemble hired.

[1]: 44 The town continues to operate the theatre, but the Bavarian government remains the owner and carries most of the financial burden.