In imperial Russia wealthy families would often create their own home theatres, where famous artists and musicians were invited. Construction of a theatre in the Yusupov princely palace began in 1830 and ended only in the 1890s. The auditorium accommodates 180 people, it is decorated in Rococo style with stucco, gilding and paintings on the ceiling.

World-famous artists and musicians performed at the Yusupov family's home theatre: opera singer Fyodor Chaliapin, composers Franz Liszt and Frederick Chopin, ballet star Anna Pavlova. The palatial orchestra was conducted by composers Mikhail Glinka and Alexander Dargomyzhsky. The princely family was frequently visited by royal persons.Today the repertoire of the theatre includes classical operas and operettas, fragments of ballet productions, performances for children.