The Historic Tennessee Theatre Foundation was formed in 1996 and Dick Broadcasting donated the theater to the non-profit.
It was designated "The Official State Theatre of Tennessee".
In 2001, the Foundation announced a campaign to completely restore and renovate the theater.
The $29.3 million project was funded through public and private donations with the help of $6.3 million in tax credits.
The theater closed for renovations in June 2003 to completely restore it to its original state.

Renovations included expansions of the stage depth via a cantilever two stories above State street, which accommodated larger and more elaborate productions, a custom orchestra shell to enhance the acoustics of the new larger stage, an enlarged orchestra pit, upgraded dressing room facilities, modernization of the lighting, rigging, and other theatrical equipment, the installations of elevators, and a new marquee.
The restorations included new carpets, draperies, and lighting fixtures that duplicated the original designs, and historically accurate restoration of all plaster and paint surfaces throughout the lobby, lounges, foyers, and the auditorium.
Integration of acoustic treatments into the restored auditorium and lobby, and a substantially improved exterior sound isolation system were included in the restoration design.
Seating capacity is now at 1,645 patrons.

The design team for this renovation effort was led by McCarty Holsaple Architects of Knoxville, Tennessee and included Westlake Reed Leskosky Architects of Cleveland, Ohio;  Evergreene Studios, Historic Restoration Consultants of New York, New York; and Acoustic Consultant Kirkegaard Associates of Chicago, Illinois.
The conductor was Knoxville-based Denark Construction.

The theater reopened on January 14, 2005 and had a near sold-out season.
The Historic Tennessee Theatre Foundation was formed in 1996 and Dick Broadcasting donated the theater to the non-profit. It was designated "The Official State Theatre of Tennessee". In 2001, the Foundation announced a campaign to completely restore and renovate the theater. The $29.3 million project was funded through public and private donations with the help of $6.3 million in tax credits. The theater closed for renovations in June 2003 to completely restore it to its original state.
Renovations included expansions of the stage depth via a cantilever two stories above State street, which accommodated larger and more elaborate productions, a custom orchestra shell to enhance the acoustics of the new larger stage, an enlarged orchestra pit, upgraded dressing room facilities, modernization of the lighting, rigging, and other theatrical equipment, the installations of elevators, and a new marquee. The restorations included new carpets, draperies, and lighting fixtures that duplicated the original designs, and historically accurate restoration of all plaster and paint surfaces throughout the lobby, lounges, foyers, and the auditorium. Integration of acoustic treatments into the restored auditorium and lobby, and a substantially improved exterior sound isolation system were included in the restoration design. Seating capacity is now at 1,645 patrons.
The design team for this renovation effort was led by McCarty Holsaple Architects of Knoxville, Tennessee and included Westlake Reed Leskosky Architects of Cleveland, Ohio;  Evergreene Studios, Historic Restoration Consultants of New York, New York; and Acoustic Consultant Kirkegaard Associates of Chicago, Illinois. The conductor was Knoxville-based Denark Construction.
The theater reopened on January 14, 2005 and had a near sold-out season.
Tennessee Theatre