The Carolina Theatre opened on October 31, 1927, as a 2,200-seat vaudeville theater. Originally billed as "The Showplace of the Carolinas," the Carolina Theatre was considered to be the finest theater between Washington D.C. and Atlanta.

The Theatre was part of the Keith Vaudeville chain, and early programs included live performing acts, the Carolina Theatre Orchestra, the Carolina News newsreel, an audience sing-along, and a silent film accompanied by the Robert Morton theatre pipe organ. In 1928, the Carolina became the first theater in the state to install the new Vitaphone speakers, and showed films five times daily.

During the late 1960s, the Carolina was under threat of destruction due to deterioration of downtown, greater interest in suburban and neighborhood theatres, and increased demand for surface parking downtown.

In 1975, responding to the growing need for centrally-located community performance spaces, the United Arts Council raised over $550,000 to save the deteriorating Carolina Theatre building from demolition. Jefferson Pilot Corporation and ABC Southeastern Theaters sold the structure and its equipment to the United Arts Council (UAC) for $360,000. By stretching the restoration budget with volunteer labor and donated services, the Carolina was refitted for use as a 1,200-seat performing arts center and reopened in February 1977.

The Carolina continued to face challenges, however. On July 1, 1981, The Carolina a fire began in a stairwell that had once led to the segregated balcony. The Theatre was closed for a year to repair the fire damage with insurance funds.

UAC staged the Renaissance Capital Campaign in 1988, raising $5,000,000 to expand the Cultural Center on Davie Street and to again renovate the Carolina Theatre. In 1991, the Theatre reopened with refurbished dressing rooms and office spaces, a second-floor banquet area (named “The Renaissance Room”), new sound and lighting equipment, a new heating and cooling system, a modern concession stand, and new restrooms. Seating capacity was reduced to 1,075.

In March 2006, the United Arts Council (now ArtsGreensboro) passed the deed of ownership and responsibility for the historic structure to a new non-profit organization, the Carolina Theatre of Greensboro, Inc., charged with the mission of “Presenting Arts, Preserving History.”

Today, the Carolina Theatre is a fully functioning performing arts facility, featuring the Greensboro Ballet, Community Theatre of Greensboro, Greensboro Opera, and other local performing arts groups. Civic groups, businesses, and individuals also rent the facility for seminars, meeting, receptions, and weddings.