The theatre was founded by a donation of land and houses on the Rambla de Barcelona, made by Joan Bosch in favour of the Hospital of the Holy Cross, then the most important hospital in the city, to build a theatre in it.
With the benefits of the plays and shows, the hospital could bear part of its expenses.
For these benefits to be greater, the theatre would have the exclusive right to host theatrical performances in the city.
Rebuilt thanks to the donations of nobles like the Marquess of Ciutadella and the Count of El Asalto, the new theatre, more sumptuous, was inaugurated on 4 November 1788.
After three more fires and the opening of the Liceu opera house in 1847 the Teatro Principal fell into decadence.