In 1878, Irving entered into a partnership with actress Ellen Terry and re-opened the Lyceum under his own management.
With Terry as Ophelia and Portia, he revived Hamlet and produced The Merchant of Venice (1879).
His Shylock was as much discussed as his Hamlet had been, the dignity with which he invested the vengeful Jewish merchant marking a departure from the traditional interpretation of the role.

After the production of Tennyson's The Cup and revivals of Othello (in which Irving played Iago to Edwin Booth's title character) and Romeo and Juliet, there began a period at the Lyceum which had a potent effect on the English stage.

Much Ado about Nothing (1882) was followed by Twelfth Night (1884); an adaptation of Goldsmith's Vicar of Wakefield by W. G. Wills (1885); Faust (1886); Macbeth (1888, with incidental music by Arthur Sullivan); The Dead Heart, by Watts Phillips (1889); Ravenswood by Herman, and Merivales' dramatic version of Scott's Bride of Lammermoor (1890).
Portrayals in 1892 of the characters of Wolsey in Henry VIII and of the title character in King Lear were followed in 1893 by a performance of Becket in Tennyson's play of the same name.
During these years, too, Irving, with the whole Lyceum company, paid several successful visits to the United States and Canada, which were repeated in succeeding years.
 As Terry aged, there seemed to be fewer opportunities for her in his company; that was one reason she eventually left, moving on into less steady but nonetheless beloved stage work, including solo performances of Shakespeare's women.
In 1878, Irving entered into a partnership with actress Ellen Terry and re-opened the Lyceum under his own management. With Terry as Ophelia and Portia, he revived Hamlet and produced The Merchant of Venice (1879). His Shylock was as much discussed as his Hamlet had been, the dignity with which he invested the vengeful Jewish merchant marking a departure from the traditional interpretation of the role.
After the production of Tennyson's The Cup and revivals of Othello (in which Irving played Iago to Edwin Booth's title character) and Romeo and Juliet, there began a period at the Lyceum which had a potent effect on the English stage.
Much Ado about Nothing (1882) was followed by Twelfth Night (1884); an adaptation of Goldsmith's Vicar of Wakefield by W. G. Wills (1885); Faust (1886); Macbeth (1888, with incidental music by Arthur Sullivan); The Dead Heart, by Watts Phillips (1889); Ravenswood by Herman, and Merivales' dramatic version of Scott's Bride of Lammermoor (1890). Portrayals in 1892 of the characters of Wolsey in Henry VIII and of the title character in King Lear were followed in 1893 by a performance of Becket in Tennyson's play of the same name. During these years, too, Irving, with the whole Lyceum company, paid several successful visits to the United States and Canada, which were repeated in succeeding years.  As Terry aged, there seemed to be fewer opportunities for her in his company; that was one reason she eventually left, moving on into less steady but nonetheless beloved stage work, including solo performances of Shakespeare's women.
Henry Irving