Yiddish theatre consists of plays written and performed primarily by Jews in Yiddish, the language of the Ashkenazi Jewish community. The range of Yiddish theatre is broad: operetta, musical comedy, and satiric or nostalgic revues; melodrama; naturalist drama; expressionist and modernist plays. At its height, its geographical scope was comparably broad: from the late 19th century until just before World War II, professional Yiddish theatre could be found throughout the heavily Jewish areas of Eastern and East Central Europe, but also in Berlin, London, Paris, Buenos Aires and New York City.

Yiddish theatre's roots include the often satiric plays traditionally performed during religious holiday of Purim (known as Purimshpils); the singing of cantors in the synagogues; Jewish secular song and dramatic improvisation; exposure to the theatre traditions of various European countries, and the Jewish literary culture that had grown in the wake of the Jewish enlightenment (Haskalah).

Israil Bercovici wrote that it is through Yiddish theatre that "Jewish culture entered in dialogue with the outside world," both by putting itself on display and by importing theatrical pieces from other cultures.

Themes such as immigration, poverty, integration, and strong ancestral ties can be found in many Yiddish theatre productions.

Noah Prilutski (1882–1941) noted that Yiddish theatre did not arise simultaneously with theatre in other European "national" languages; he conjectured that this was at least in part because the Jewish sense of nationality favored Hebrew over Yiddish as a "national" language, but few Jews of the period were actually comfortable using Hebrew outside of a religious/liturgical context. Nonetheless, various types of performances, including those of cantors, preachers, jesters, and instrumental musicians, were a part of Eastern European Jewish life long before the formal advent of Yiddish theatre.

Bercovici suggests that, as with ancient Greek drama, elements of dramatic performance arose in Jewish life as an artistic refinement of religious practice; he highlights references in the Bible to dance, music, or song, especially in the Psalms (Hebrew tehillim, or songs of praise), where some of the headings refer to musical instruments, or to singing in dialogue, either between parts of the choir, or between the choir and the leader of the ritual (Hebrew menatseach). Also, traditional dances were associated with certain holidays, such as Sukkot.

Purim plays – the skits performed by amateur companies around the time of the Purim holiday – were a significant early form of theatrical expression. Often satiric and topical, Purim plays were traditionally performed in the courtyard of the synagogue, because they were considered too profane to be performed inside the building. These made heavy use of masks and other theatrical devices; the masquerade (and the singing and dancing) generally extended to the whole congregation, not just a small set of players. While many Purim plays told the story in the Book of Esther commemorated by the Purim holiday, others used other stories from Jewish scripture, such as the story of Joseph sold by his brothers or the sacrifice of Isaac. Over time, these well-known stories became less a subject matter than a pretext for topical and satiric theatre. Mordechai became a standard role for a clown.

Purim plays were published as early as the early 18th century. At least eight Purim plays were published between 1708 and 1720; most of these do not survive (at least some were burned in autos da fe), but one survives in the Jüdische Merkwürdigkeiten (1714), a collection by Johann Jakob Schudt (1664–1722).