Estonia has no age-old puppetry tradition, like some other countries. Regular puppet shows were first a feature of the children's programme of the Estonian Drama Theatre in the 1930s. A separate puppet theatre was founded in 1952; for decades it worked under the leadership of Ferdinand Veike.
At first it had no house of its own, constantly travelling around the country; the repertoire of that phase consisted of rather primitive puppet comedies. In 1955 part of an historic building in the old-town quarter of Tallinn became its home. The theatre started to broaden its means, often mixing puppets and live performers; plays for various age groups of children have remained dominant, but occasionally the company also stages classical or contemporary plays for adults.
After Ferdinand Veike, the theatre was long directed by Rein Agur. Then a succession of more short-time leaders followed: Eero Spriit, Allan Kress, and Evald Hermaküla. From 2000 the artistic director is Andres Dvinjaninov and the managing director is Meelis Pai.
The theatre building was extensively renovated; at present it has a 177-seat main stage, a 100-seat oval hall, an 80-seat green hall, and an open-air stage in the back yard. The Puppet Theatre has actively participated at various regional and international festivals and brought home many awards. The last seasons have witnessed a growth in musical productions and various experimental projects. Being at present the only fully professional children's theatre in Estonia, the company continues to travel widely in the country.