In the seventeenth century this was the Gran Sala or Sala Regia, used by the Spanish viceroys for celebrations and performances using temporary installations. In 1768 this was transformed into a permanent theatre by the architect Ferdinando Fuga for the wedding of the Bourbon king Ferdinand IV to Maria Carolina of Habsburg. The niches house twelve papier-mâché statues depicting Apollo and the nine Muses, the patron deities of the arts, Minerva, the goddess of wisdom, and Mercury, the messenger of the Gods. The use of papier-mâché was fitting for a theatrical environment, but also functional for the acoustics of the theatre.
Bombing during the Second World damaged the roof and destroyed the eighteenth century decoration of the vault, later repainted in its original style. The central scene depicts the Wedding of Poseidon and Amphitrite, based on the original painted by Antonio Dominici in 1768.
The Court Theatre is an active venue and regularly hosts theatrical performances, concerts and conferences.