The beginnings of the theatre date back to 1708, when the Madrid City Council granted the Italian company Bartoli permission to build the structure on the site of the public bath house Caños del Peral. In 1735, the Bartoli theatre suffered severe damage and the Theatre at Caños del Peral was closed, with the exception of occasional costume balls. During the period 1786-181, however, the site experienced one of the most glamorous periods in its history featuring grand performances of Italian opera and ballet. Still, the decision to tear down the Theatre at Caños del Peral was made in 1819, and a new structure emerged on the site: the future Royal Theatre. The construction of the new theatre house began in 1823, only to be halted in 1837. Following several years of financial struggles and tight budget, the project was terminated.

In 1850, following a royal order, the construction was finished and the site finally opened to the public. Verdi himself visited the opera in 1863 at the premiere of his ‘La Forza del Destino’. The turn of the 20th Century was a particularly fruitful period for the opera, and it was in 1916 that the Russian Ballet of Diaghilev debuted on its stage, performing the works by Nijinsky and Stravinsky. Still, in 1927, the structure’s atrocious state called for further restoration. The preservation of the building was entrusted to architects Antonio Flórez and Pedro Muguruza, who worked on the project until the late 1930s. However, upon the outbreak of the Civil War, the unfinished theatre served as a gunpowder storage and was further demolished by a series of explosions. In 1965, following an act of the Ministry of Culture, the site was refurbished and turned into a concert hall.

In 1966, the Royal Theatre opened with a performance of the Spanish National Orchestra and Choir. However, there were still some controversies over the purpose of the building. Eventually, two years later, a decision to convert the Royal Theatre into an operatic venue was made. Soon after, the National Music Auditorium also opened and in 1997, the entire building was officially announced an opera theatre. The ceremony was attended by the King and Queen of Spain. The opening performances included: ‘El Sombrero de Tres Picos’ and ‘La Vida Breve de Falla’. Some of the more notable performances held at this site were ‘O Corvo Branco’ by Philip Glass, ‘Die Bassariden’ by Werner Henze, ‘Fate’ by Leos Janácek, as well as the Spanish ‘La señorita Cristina’ by Luis de Pablo.