From its establishment in 1987 this festival restores the Mediterranean spirit of the Old Town and each of its squares and piazzette, also the parts of Budva beyond the heart of the Old Town, turning them into an outdoor stage where both visitor and passers-by become participants of the acts of art.

The festival has been a part of the city tourism from its very beginning. Theatre City is a must-visit destination for both residents and cultural tourists, and is visited by the number of 15,000 people every year.