Since its formation in 1977, the group changed several music styles and line ups but remained one of the top acts of both the Croatian and Yugoslav rock scenes.
All of them, except Houra, previously played in another band called Ciferšlus (Zipper), but after he joined them to form a new group, they opted for the name Prljavo kazalište (meaning 'Dirty Theatre' in Croatian) after an episode of the satirical Italian comic book Alan Ford, which was very popular in the former Yugoslavia.
In its early beginnings, Prljavo kazalište was a punk rock band, although they initially wanted to sound like The Rolling Stones for whom they maintained a great admiration.
The album soon came to prominence all over the former Yugoslav federation for its social commentary and provoked the then-ruling one-party system, additionally because it also featured probably the first gay-themed song in Yugoslavia titled "Neki dječaci (Some Boys)" (followed later by "Retko te viđam sa devojkama" by Idoli).
On their second album titled Crno bijeli svijet (Black and White World) released in 1980, Prljavo kazalište affiliated with the new wave music, accepting a more polished image and sound.
Also, it featured a cover version of Sedamnaest ti je godina tek by the notable retro traditional pop singer Ivo Robić.
After the release of the record, Fileš and Hrastek were conscripted in the Yugoslav People's Army, so the group performed with the help of the drummer Dražen Šolc and the former member Zoran Cvetković who played bass this time.
In 1983, Davorin Bogović returned to the band, and sang on their fourth album Korak od sna released jointly by Suzy and CBS Records, which featured the hit Sve je lako kad si mlad.
Between others, on this album is song "Dobar vjetar u ledja" ("Good wind in the back"), which is some sort of homage to legendary Hollywood actor Montgomery Clift.
This record was shifted to pop-rock oriented music and it included the successful hits: Ne zovi mama doktora, Sladoled and Ma kog me boga za tebe pitaju.
Hence the lyrics Zadnja ruža Hrvatska (meaning: Last Croatian Rose) made the song very popular in Croatia, but also criticized in some parts of the rest of Yugoslavia due to (perceived) nationalist undertones, which were considered politically incorrect for the Yugoslav policy of brotherhood and unity.
The band went on an international tour which culminated with a big open-air show played on October 17, 1989 on the Republic Square in Zagreb in front of approximately 200,000–300,000 people.
Beside live material from the concert held in November 1988 at the Zagreb's Dom Sportova and from the performance at the ZG Rock Forces festival, it included few older studio tracks as well.
During the first years of the Croatian War of Independence, which established the Republic of Croatia as an independent state, the group paused its activities and in 1993 with the new keyboard player Fedor Boić (former member of ITD bend) released the album Lupi petama for InterService label with the patriotic war songs Lupi petama, Pet dana ratujem, subotom se zaljubljujem and others.
The group adopted elements of folk music and a traditional tambura orchestra from Vinkovci appeared on their track Uzalud vam trud svirači.
A Polish cover version of the Prljavo kazalište's song Crno bijeli svijet, translated as Czarno-Biały Świat performed by Kazik was included in the tribute album titled Yugoton released in Poland in 2001.