The theater is named after the Austrian dramatist Ferdinand Raimund, it was built by an association of 500 residents of the municipality of Mariahilf.

Other premieres included Robert Stolz's Das Glücksmädel and Dreimäderlhaus, set to various pieces of music by Franz Schubert; this was performed more than 1200 times between 1916 and 1927.

In 1948, Rudolf Marik took over as director for almost 30 years, transforming it into an internationally recognised theatre of the German-speaking world exclusively staging operettas with stars such as Johannes Heesters, Marika Rökk, and others.

Many well-known actors started their careers at the Raimund Theatre, including Hansi Niese, Paula Wessely, Attila Hörbiger, and Karl Skraup.

After Joseph and the Amazing Technicolor Dreamcoat and a new production of Hair in September 2002, Wake Up was premiered, being the first musical by Rainhard Fendrich and Harold Faltermeyer.

In March 2010 a musical with songs by Udo Jürgens, an Austrian songwriter and entertainer, called "Ich war noch niemals in New York" opened and is going to stay until the end of June 2012.