Opened in 1910, the theater was originally named The Globe, after Shakespeare's theater in England. The theater had a retractable roof to enable the theater to stay cool and open during the summer. For nearly two decades, the theater housed a variety of plays and musicals until 1932 when it was turned into a movie house.

In 1958, the theater was gutted and rebuilt in its present configuration as a legitimate theater. It was renamed in honor of America's foremost husband/wife acting couple, Alfred Lunt and Lynn Fontanne, who starred in its first production, The Visit. Theater-goers can enjoy a selection of photographs from their private collection on display throughout the lobby areas.