The theatre is a small, 623 seat venue, with an oval-shaped auditorium, three tiers of boxes constructed entirely of wood, decorated with gold leaf, and a pale blue trompe-l'œil ceiling that resembles a round cupola.

In 1731, António Manoel de Vilhena commissioned and personally funded the construction of the building to serve as a public theatre "for the honest recreation of the people.

On 18 January 1769 the play "Il trionfo di Minerva", by Lentisco Adrasteo was presented on the occasion of Grand Master Manuel Pinto da Fonseca's birthday.

On this occasion, Hompesch appeared on the balcony thanking the crowd, showering handfuls of gold coins on the people that had gathered to applaud.

[10] Over the course of the next half-century, it was the venue for an extensive repertoire of lyric operas performed by companies of visiting professionals or by amateur groups of knights, and French tragedies or Italian comedies.

Works by Johann Adolf Hasse, Niccolò Piccinni and Baldassare Galuppi were extremely popular at the theatre during its early years.

[7] A few years later, in 1783, the Teatro Pubblico underwent considerable modification and decoration, based on a design by the Roman architect, Natale Marini.

An English gentleman who accompanied Abercrombie's expedition to Egypt in 1801, wrote that: "La Valette possesses an opera, small indeed, but neat, though much out of repair.

In 1861, the Teatro Reale was given on perpetual lease, by the government, to Dr. Salvatore Mifsud and Anacleto Conti for an annual ground rent of £236,15, and in 1862, the directum dominium was sold to Emmanuele Scicluna for £7,833.6.8.

[17] The theatre had fallen into disuse in 1866, as a result of the construction of Malta's new Royal Opera House, designed by Edward Middleton Barry, on Strada Reale, at the entrance to Valletta.

[7] However, in 1873, the Teatro Reale – was officially renamed "Manoel Theatre",[5] and it enjoyed a brief new lease on life when the Royal Opera House burnt down.

On 27 December 1922, 6 January 1923 and 3 February 1923, Teatru Manoel was the venue for the first public airing of Malta's National Anthem, "L-Innu Malti.

"[7] During the Second World War, Teatru Manoel served as emergency accommodation for victims of the constant bombardment by the Luftwaffe and the Regia Aeronautica.

[18] Despite numerous alterations over the years, it retains many of its old architectural features, such as the white Carrara marble staircase, shell-shaped niches, and Viennese chandeliers.

Two water reservoirs beneath the floor create an acoustic environment that is so precise that the hushed page-turnings of an orchestra conductor can be heard clearly throughout the auditorium.

[19] Following the destruction of the Royal Opera House by Axis bombardment on 7 April 1942, Teatru Manoel was expropriated by the Government of Malta in 1956, and was quickly restored to its former glory.

[24] In 2004, the auditorium was restored by a team of Sante Guido Restauro e Conservazione di Opere d'Arte, who unearthed paintings that will allow the understanding of the theatre's development.

[29] Many productions are regularly presented, both by local talent and international stars, and the theatre has been a source for the cultural appreciation of the arts in Malta.