Punjabi Theatre has flourished mainly in the twentieth century. It has now extended to India, Pakistan, UK and Canada. The performances in Punjabi Theatre are mainly by the amateur companies. Punjabi theatre shows mainly `western drama` with a realistic and socially oriented drama, having links to Sanskrit drama. In other countries, the Punjabi Theatre is performed by incorporating Punjabi folk materials. Renowned Punjabi Theatre actor Sh Tera Singh Chan played an important role in establishing Indian People`s Theatre Association. Another Punjabi Theatre Playwright and director, Baiwant Gargi became a Professor of Indian Theatre at the University of Seattle. He has produced Punjabi Theatre in the West and incorporated Punjabi folk and ritual elements in the Theatres there.

Most of the Punjabi Theatre actors have moved to the films and have successful also. Therefore, Punjabi Theatre is now suffering from the lack of quality actors in the theatres to perform.