The Plaza Theatre has a rich history, originally starting as the Plaza Hotel in 1904. Situated in Wharton's Monterey Square, it began as a two-story brick building with a dining room on the first floor and 20 rooms for guests upstairs. Over the years, it became a focal point for various community events, conventions, and banquets. In 1929 a third floor was added to the building which increased the number of guest rooms and even housed Wharton's first radio station in a small opera house.

In 1941, the hotel was sold to Long-Griffith Theaters, who transformed it into a Streamline Moderne Art Deco movie theater. Opening in March 1942, the Plaza Theatre operated as one of Wharton's three movie theaters for several decades until the 1980s when it was closed and left abandoned.

In 1995, the abandoned theater was given a new lease on life when the Community Theatre of Wharton, now known as the Plaza Theatre, restored and reopened it as a regional performing arts center. Today visitors can enjoy live plays, concerts, and special events in the historic building.