One of two theatres (the other being the Théâtre de la Ville) built on the site of a châtelet, a small castle or fortress, it was designed by Gabriel Davioud at the request of Baron Haussmann between 1860 and 1862.

The theatre is one of two apparent twins constructed along the quays of the Seine, facing each other across the open Place du Châtelet.

[2] The repertory, fixed by a decree of 20 September 1862, included military works and féeries in one or several acts, as well as dramas and vaudevilles.

It was the first venue for the Ballets Russes, before they moved to the new théâtre des Champs-Élysées with their 1913 season: among the ballets premiered at the Châtelet are Igor Stravinsky's Petrushka on 13 June 1911, Paul Dukas' La Péri on 22 April 1912, Vaslav Nijinsky's Afternoon of a Faun on 29 May 1912, Maurice Ravel's Daphnis et Chloé on 8 June 1912, and Erik Satie and Jean Cocteau's Parade on 18 May 1917.

In addition, many foreign composers and conductors made appearances in the theatre, including Pyotr Ilyich Tchaikovsky, Gustav Mahler and Richard Strauss.

Under the artistic direction of Stéphane Lissner from 1995 to 1999, the theatre received additional improvements in acoustics and sight lines.

[7] Outside of the theatre, allegorical statues symbolising dance, music, comedy and drama which were removed at the end of the 19th century were restored.

When the theatre re-opened in 2019, Mackenzie and Lauriot dit Prévost introduced a "Robin Hood scheme" for theatregoers and sponsors to buy extra tickets for those who cannot afford them.

[14] On 24 February 2022, 32 dancers of the Kyiv City Ballet were stranded in Paris due to the Russian invasion of Ukraine.

Anne Hidalgo, mayor of Paris, announced this at one of the group's first performances at the theatre, saying the arrangement would last "for as long as it takes.