By the 1930s he returned to theater work, playing some minor roles until 1932, when he was cast as Wang Yun in the film, The Skull Murder Mystery.

[4] Lee's parents had started a laundry and grocery business in Watsonville, but they moved many times before finally settling in Ripon, California.

Hoping to dismantle the "racist attitudes that had been developing on the stage and in print media over the latter half of the nineteenth century," Lee fused yellowface, a caricature portrayal of Asians done by white actors, with "singing operatic and popular songs, doing ethnic impersonations, and exchanging comedic patter".

By combining what the general public were familiar with, yellowface, and using his musical and comedic talent, Lee quickly gained recognition.

Lee's most famous sets were of mocking stereotypes of Chinese immigrants and Scottish caricatures, which he based on Harry Lauder's character Highlander.

Lee also performed many popular acts such as numbers from Tin Pan Alley and "My Own United States" (1909) a song from a Civil War-themed musical, When Johnny comes Marching Home.