In 1923, the city of Durham chose to construct an auditorium on a lot adjacent to Morris Street School.

In 1977, the North Carolina Department of Archives and History completed a historic survey of Downtown Durham and recognized The Carolina Theatre as a "significant building in the city" and the center portion of downtown was placed on the National Register of Historic Places.

The most recent renovation of the theater was in 2011, which included plaster repairs, new carpeting, painting, and sound upgrades in Fletcher Hall and the Cinemas.

[2] The Carolina Theatre was designed in the Beaux-Arts style by the Washington, D.C. architectural firm of Milburn, Heister & Company.

The Carolina Theatre was the first theater in Durham to admit African-Americans, although there were still segregated ticket lines and lounge areas until the summer of 1963.