The Unicorn Theatre grew out of a drama camp held at the Shore Club in Hubbards on July 22 and 23, 1995. Iris Elliott and Caroline Hadamitzky, the directors of that camp, were so impressed with the talent shown by the campers that they decided to start a year-round youth theatre, which they called “Unicorn”.

Unicorn Theatre’s first production, “Annie”, was performed at Shatford Memorial School, Hubbards in March 1996. In the summer of 1996, the theatre moved into Hubbards Square where it remained until September 2001 when the Board of Directors decided to make the move to the Bay Community Centre, 11 Station Road, Head of St. Margaret's Bay.

 As a registered non-profit society, the theatre is totally run by volunteers under the guidance of a Board of Directors.