The Community Theatre was built in 1937 by Walter Reade. It flourished as a premier motion picture house until 1974 when it was sold by the Walter Reade organization. The theatre changed hands several times over the years until it was purchased by a local developer in 1986. It sat empty and in disrepair until 1994. Thanks to massive cleanup efforts by a community-based volunteer corps, on September 29, 1994, the Community Theatre reopened to a sell-out crowd, featuring The Kirov Orchestra of St. Petersburg, Russia.

The Community Theatre's concert season has become a cultural fixture in New Jersey. As one reviewer remarked: "Morristown has suddenly come alive as a cultural and artistic center with attention focused on events at The Community Theatre on South Street."

In 2006, the Theatre launched a $7 million Capital Campaign to upgrade its backstage technical capabilities, including the addition of an orchestra pit, fly-rail system, new dressing rooms and air conditioning. A building annex will house a multi-purpose room that can be used as a classroom, black box theatre and reception space. In May 2007, the Board of Trustees announced that the new name of the expanded complex will be called Mayo Center for the Performing Arts, after longtime Board Chairman Bud Mayo. The concert venue will be known as The Community Theatre at Mayo Center for the Performing Arts.