It was the first air-conditioned building outside of Chicago, IL. The theater was commissioned by theater owner J.J. Rubens who, before construction, sold the company to the Paramount Famous Lasky Corporation.

When Paramount Pictures owned the design, they decided to build movie palaces all over the country, using this theatre as a prototype. For more than 40 years, the Paramount offered the public a variety of entertainment, including "talking pictures", vaudeville, concerts and circus performances.

In 1976, Aurora Civic Center Authority purchased the Paramount and closed the theater for restoration. The $1.5 million project restored the Paramount to its original grandeur. On April 29, 1978, the Paramount Arts Center opened, offering a variety of theatrical, musical, comedy, dance and family programming.

In 2006, a 12,000 square foot lobby was added. The Grand Gallery houses a state-of-the-art box office, a cafe, a gift shop and an art gallery. The renovation of 28 Downer has provided a home for the Paramount School of Performing Arts bringing professional acting classes to the western suburbs.

Today, the Paramount Theatre supports an annual audience of 150,000 patrons and was named one of the Top 10 theatres in Chicago by the League of Chicago Theatres. The theatre continues to be an anchor in the city bringing in approximately $3.3 million in ancillary revenue as well as hosting many free community events including the Midwest Literary Festival, the Air Force Band Concert, the Aurora Idol Competition and staging the annual Fox Valley Park District children's production.