The Vígszínház was designed by architects Ferdinand Fellner and Hermann Helmer who worked on over 47 state-of-the-art theatre buildings around Europe.

Its construction was financed by the tripartite ownership consisting of Count István Keglevich, the writer Ferenc Szécsi, and local businessman Gábor Faludi.

They quickly created a unique and modern repertoire differing from the era's classical theatre, that featured both French comedies, contemporary Hungarian (starting the career of Ferenc Molnár, Sándor Bródy, or Jenő Heltai), and foreign (like from Irwine Shaw, Bertold Brecht, Anton Chekhov) dramas.

Regaining its original name in 1960, Vígszínház became the main center of contemporary drama again, showing plays from Hungarian authors like Gábor Thurzó, Gyula Illyés, István Örkény, or classical 20th century authors like Arthur Miller or Friedrich Dürrenmatt.

In 1973 they premiered the popular Képzelt riport egy amerikai popfesztiválról (An Imaginary Report on an American Rock Festival), resulting in several other musical productions under the supervision of Gábor Presser.

Initially there was an elegant coffee house with marble columns in the tract opens to the Aranykéz Street.

The upper floors originally accommodated private apartments, but these were rebuilt for suites of Hotel National.