The foundation of the theater dates back to August 1941, when a small group of actors evacuated to Kharkov formed the Ukrainian Drama Theater to serve military units and hospitals during World War II. From the evacuation, the theater moved to Voroshilovgrad (present Luhansk) and started its first peace season
in September 1945.
The 1960s was a difficult period for the theater: several reorganizations took place; there was a lack of staff, a frequent change of artistic directors, and difficulties with timely and quality release of the performances. Only in the late 1970s, the theater resumed active work, in many respects owing to the experimental laboratory for young directors created by the chief director Albert Bondarenko that owned the right of the first production. The performing skills of the company increased noticeably.
The theater opened the season 1998-1999 in the new building (reconstructed former Palace of Culture of Builders), and in 2002 was awarded the title "Academic".
In 1988, Vladimir Moskovchenko was appointed the chief director, after which the repertoire of the theater expanded, and a large number of young actors joined the company. The director's fresh look at the Ukrainian classical drama was repeatedly awarded with diplomas at a number of international and national theater festivals. Among such performances "Beztalannya" by Ivan Karpenko-Kary, "Matchmaking in Goncharovka" by Hryhory Kvitka- Osnovyanenko, and "Kupala Night" by Mikhail Staritsky.
At the beginning of 2014, the creative team had about 70 artists (including ballet and orchestra). By that time, the theater produced 7 premiere productions a year, 300 performances were attended by more than 75 thousand spectators.
In December 2014, due to the occupation of Luhansk, the theater was moved to Severodonetsk. In August 2015, the theater was provided with the building of the former Severodonetsk City Drama Theater (that was in emergency condition), which became a completely renewed base for the preparation and release of performances after major repairs in 2017.
In May 2015, having four full-time actors and several administrative staff members, the theater produced its first performance. Now the company comprises more than 100 people, and the repertoire consists of 26 performances, most of which are directed by Honored Art Worker of Ukraine Vladimir Moskovchenko and stage directors Veronika Zolotoverha and Yevgeny Merzlyakov.
To date, the theater has already shown its performances in Poland, 10 cities in other regions of Ukraine and 10 cities in the Luhansk region, participated in 8 theater festivals, 3 international projects, numerous solemn and cultural events.
In June 2016, the first joint project of the Luhansk Ukrainian Theater and the German Association VladOpera e.V. was carried out. With the participation of the "Ukrainian New Drama", a documentary play "The Legends from Severo" (dir. Andrey May) was staged, based on the stories of real characters —actors of the theater. This cabaret performance describes the parallel worlds of the characters and their attempts to find their place in life amidst recent events, 30 kilometers from the war zone.