The Magyar Theatre, designed by Adolf Láng, and founded by the Rákosi-Beöthy family was built in 1897 in the then-suburban Izabella (today Hevesi Sándor) square.

By 1907–1918 the Magyar Theatre's repertoire consisted of contemporary Hungarian and foreign dramas, supported by the building's small, intimate set-up.

Many of the era's most prolific directors worked in the theatre during these years, including László Márkus, János Vaszary or Sándor Hevesi.

This enabled the inclusion of a much larger main hall, and several workshops, costume and furniture storage, 10 new dressing rooms, and an enlarged auditorium.

The foundation stone of the – first official Hungarian-speaking theatrical institution, the – Magyar Theatre in Pest was laid in 1835, which was opened on 1837 August 22.

The company moved many times, when they received as a temporary home, the building in the area now known as Hevesi Sándor Square (in the seventh district of Budapest).