Chinese Little Theatre first emerged more than twenty years ago in the 1980s, following liberalisation under the Open Door Policy. It developed rapidly and is now a thriving industry, however, its development was influenced by several factors which helped it evolve its own unique styles. Little theatres have advantages and disadvantages over conventional theatres, and these will be explored in this work. Further, there have been a number of influential individuals in its development. Meng Jinghui especially played an important role in the process of connecting the theatre with the market. In this dissertation I will concentrate on closely analysing the Chinese Little Theatre and its development in a variety aspects.