Atlanta mayor Maynard Jackson intervened resulting in the sale of the building to the Little Five Points Partnership, which was redeveloping the neighborhood in the early 1980s.

[7] In 1982, Atlanta actor and art cinema operator George Ellis (known to many in the area as TV host Bestoink Dooley[8]) was looking for another, larger theater location to exhibit films.

[9] After finding that the Little Five Points Partnership needed a tenant for the Euclid, Ellis recruited his friend Glenn Sirkis (a former Hayes Microcomputer Products executive) as an investor in the project.

The exterior elements of the theater were retained, but the interior was "totally redesigned" with 310 seats, and a series of small mezzanines to accommodate tables and chairs along the outside walls.

"[15] Because the Ellis was a single screen, Sirkis and Kirn had trouble convincing movie distributors to rent films to them (as opposed to multi-screen operators in Atlanta such as George Lefont and the major chains).

[14] In the next year a group called The George Ellis Film Society was formed with the goal of reopening the theater, but that effort was ultimately unsuccessful.

In 1989 Paul Blane, a 62-year-old talent manager and producer from Valdosta, Georgia, moved to Atlanta to dedicate the theater to live performances, particularly featuring classic motion picture stars.

[19] Musical performers were also featured during this era, such as The Blue Nile,[20] The Dirty Dozen Brass Band,[21] Muzsikás,[22] Odetta[23] and Leon Redbone.

Ultimately, on Monday, August 20, 1990, the management of the theater was assumed by Steven Harris of Windstorm Productions, a 30-year-old Atlanta-area concert promoter.

The theater was briefly closed for some renovations, and reopened on September 7, 1990, with The Count Basie Orchestra as the first show, followed by Tom Rush the next day.

[25] In October 2015, Variety Playhouse was purchased by Agon, the owner of Georgia Theatre in Athens, GA.[26] In Summer 2016, venue operations were shut down for a full-scale renovation.

These have included Adele, Augustana,[28] Natasha Bedingfield,[29] Basia, The BoDeans, Built to Spill, The Bridges, Colbie Caillat, Jeff Mangum, Ray Davies, Dawes, Dead Confederate, The Detroit Cobras, The Dresden Dolls, Donna the Buffalo, Lucky Dube, Jakob Dylan, Tinsley Ellis, Alejandro Escovedo, The Faint, Brooke Fraser,[28] Galactic,[30] Ghostface Killah, Gnarls Barkley, Godspeed You!

Black Emperor, Gogol Bordello, José González,[28] The Greyboy Allstars,[31] David Grisman, Hampton Grease Band, The Hold Steady, Tim & Eric, Hot Tuna, Israel Vibration, Daniel Johnston, The Kooks, Modest Mouse, Ben Kweller, Locksley, Gary Louris, Shelby Lynne, Magnapop, Stephen Malkmus and the Jicks, Meat Puppets, Minus the Bear, Moonalice, Kate Nash, Gabby La La, Colonel Claypool's Bucket of Bernie Brains, The New Pornographers, 1990s, of Montreal, Old 97's, Amy Ray, Overkill, Nile, HammerFall, Michael Schenker Fest, Rilo Kiley, Carrie Rodriguez, Rooney, Ike Stubblefield, The Swell Season, Matthew Sweet, Particle, The Ting Tings, Toots & the Maytals, Pnuma Trio, The Undertow Orchestra, Vetiver, The Whigs, Wolf Parade,

Dan Zanes and Friends[28] and Zap Mama[32] The building boasts good acoustics and a well-equipped sound system,[33] leading several artists to record live albums here.

These have included Sara Bareilles,[34] Blueground Undergrass,[35] Lea DeLaria,[36] Jay Farrar,[37] Dominic Gaudious,[38] Shawn Mullins,[39] Phish,[40] Soulive,[41] They Might Be Giants[42] and Butch Walker.

These include such artists as Ryan Adams, Animal Collective, Aquarium Rescue Unit, Benevento/Russo Duo, Blues Traveler, Buckethead, The John Butler Trio, Camper Van Beethoven, Carbon Leaf, The Codetalkers, Cowboy Junkies, Cracker, Dark Star Orchestra, Dinosaur Jr, JJ Grey & MOFRO, Howie Day, Karl Denson's Tiny Universe, Disco Biscuits, Drive-By Truckers, Eddie from Ohio, Explosions in the Sky,[45] Robert Fripp,[46] The Grapes, Indecision, Jacob Fred Jazz Odyssey, Jump, Little Children, Steve Kimock, Leftover Salmon, Little Feat, Matisyahu, moe., Jason Mraz, Matt Nathanson, North Mississippi Allstars,