At the beginning of 1904, the capital's Bulgarian drama troupe "Tear and Laughter" was renamed "Bulgarian National Theater" and this is considered the birth date of the National Theater. In 1906, the troupe was already called "National Theater".

With the professionalization of the theater in Bulgaria, the question of building a modern, European theater building is raised. At the 39th session of the National Assembly - on 15.12.1898, a fund was voted for its construction. For this purpose, it was decided that the tickets of the Sofia City Lottery will not be sold, but instead the city municipality will pay BGN 100 per year to the state treasury, and the sum thus collected will go to the fund for the construction of the building for the state theater.

Thanks to the efforts of the then Minister of Public Education, Prof. Ivan Shishmanov, in 1904 the construction of the National Theater building began on the site of the "Osnova" wooden theater. The design was entrusted to the experienced Viennese architects Hermann Helmer and Ferdinand Fellner. The building was reconstructed several times - after the great fire in 1923; after the bombing of Sofia, when its southern wing was damaged, and the major renovation in 1972-1975, when the Chamber Stage was created. It is curious that in the beginning the dramatic theater went hand in hand with the opera and, although the two performing arts were constantly separated and united, from 1912 they staged performances in the same building - that of the National Theatre. Pencho Slaveykov, as its director, later also famous figures such as the poets Peyo Yavorov, Nikolay Liliev, Geo Milev, and the long-time chief director Nikolay Masalitinov made a great contribution to the building of the theater's creative image.

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