The Ancient Theatre of Dionysos used to be right beneath the Acropolis, at the foot of the sacred rock. The theater, which is the most important known theatrical space of ancient Athens, was founded around the 6th century BC and then took various forms over the years. The number of spectators that could be seated is estimated to surpass the 15,000.

This is the area where the Great Dionysia took place, being the most important celebration in honor of the god Dionysus. It is probably within these celebrations that all the works of leading ancient playwrights such as Aeschylus, Sophocles, Euripides and Aristophanes first appeared. The performances were watched all Athenian citizens and expenses were assumed by the more affluent , with so-called "sponsorship".

The raids of Silla (86 BC) and the Heruli (267 AD) did not leave the Ancient Theatre of Dionysus intact, so now only a small part of it survives.