The Bethesda Theatre opened on May 19, 1938, with a glamorous Hollywood-style premiere and the film attraction Bluebeard's Eighth Wife, starring Gary Cooper and Claudette Colbert. Owner/operator Sidney Lust had entrusted the theater's design to renowned architect John Eberson and took special pride in providing a theater as stylish in its Art Deco design as it was state-of-the-art in technology and comfort. The fanfare and excitement associated with the opening is reflected in a special supplement to the Bethesda-Chevy Chase Tribune published to commemorate the opening of the theater. Included are messages of greeting and congratulations from dozens of Hollywood's most glamorous and popular film stars, including Clark Gable, Spencer Tracy, Fred Astaire, Ginger Rogers, Claudette Colbert, and Gary Cooper.

Originally called the Boro Theatre, the name was changed just one year later. The movie house was an immediate success and quickly became a community landmark. In addition to its cinema offerings, it also served as the site of numerous community events. After operating as a traditional movie house for more than four decades, the venue was converted to a restaurant/movie house format in 1983, known then as the Bethesda Cinema N’ Drafthouse. In 1990, it became the Bethesda Theatre Café.

One of the few remaining examples of Art Deco cinemas in the Greater Washington Metropolitan Area, the Bethesda Theatre was listed on the National Register of Historic Places in 1999. Today, through the efforts of developers the Bozzuto Group and Smith Payes, LLC, and historic architect Oehrlein and Associates, the Bethesda Theatre is being preserved and renovated to become once again one of the area's premier entertainment venues.