The historic Provincetown Playhouse is credited with launching the careers of Anne Bancroft, Julie Harris and Eugene O'Neill, who premiered many of his early plays at the Provincetown. The department presents readings, new musical works, and storytelling evenings, among other events and performances in the Playhouse. It is also used a classroom for larger classes.

The theater  which is run by Steinhardt's programs in vocal performance and educational theater  has an illustrious place in the history of American drama. Renovations preserved the Playhouse's original brick walls, refurbished the mid-century seat end standards, restored the exterior to its 1940 facade, and updated the 88-seat theater's seating, lighting and sound controls, and air handling.