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The National Theatre was first envisioned by Count István Széchenyi along the banks of the Danube. He planned a magnificent building and intended to operate the institution as a joint-stock company. In his 1832 pamphlet On the Hungarian Stage, the count proposed the construction of a grand theatre.

The company initially rented the Népszínház building located on Blaha Lujza Square. In 1964, the troupe moved to the current Thália Theatre building on Nagymező Street. Two years later, they relocated to the former Magyar Színház building on Hevesi Sándor Square for an extended transitional period. The theatre retained the name "National Theatre" until September 1, 2000, when construction began on the new building along the Danube.

The new National Theatre, located by the Danube, opened its doors on March 15, 2002. Its completion turned it into a national symbol and emblem.