Shanghai Theatre Academy, a prestigious art institute in China and originally Shanghai Municipal Experimental Drama School, was founded by the famous artists, Gu Zhongyi, Li Jianwu, Wu Renzhi and Xiong Foxi on December 1, 1945. It boasted a group of the best artists in China at the time as its faculty members. These included Ouyang Yugian, Hong Shen, Cao Yu, Huang Zuolin, Zhang Junxing, Chen Baichen and many others. The school was situated on 1844 Sichuan Road in Shanghai.

In October 1949, the name of the school was changed to Shanghai Municipal Drama School. In 1952, in keeping with the reforms in institutions of higher learning in China, the school was combined with the drama section of the department of arts in Shandong University and the drama group in Shanghai Xingzhi Art School and it was named Huadong Institute of Central Drama. In 1956, it changed into the present Shanghai Theatre Academy under the direct administration of the Ministry of Culture of the People's Republic of China. The school was moved to 630 Huashan Road in Shanghai.

The school was expanded with a complete curriculum. Although regular teaching was severely interfered with during the Cultural Revolution, it quickly recovered and developed with the reform programs in China. In 1992, it was designated as an avant-guard in the comprehensive reforms in administration. In 1993, reforms in teaching also took effect. It was honored as a National Model Unit by the Ministry of Personnel and the Ministry of Culture of China.

Professor Xiong Foxi, the leading dramatist of modern times, was the president of the Shanghai Theatre Academy for a long time. Subsequent presidents include Su Kun, Chen Gongmin, He Tianfa (deputy) and Yu Qiouyu. The current president is Professor Hu Miaosheng who is both a drama theorist and a stage designer.

Shanghai Theatre Academy has always been called "The Cradle of Artists" which has nurtured over 5000 talented artists who are working in various parts of the country. They are the pride and glory of the school.

Among them are famous actors and actresses on stage, in films and on television. Following the first Baihua Prize won by Zhu Xijuan in 1961, more than 30 graduates from the Department of Acting such as Pan Hong, Xi Meijuan, Yang Zaibao, Sun Feihu won the Baihua Prize, the Golden Rooster Prize, the Feitian Prize, the Golden Eagle Prize, the Plum Prize, the Wenhua Prize respectively. Hu Qingshu, Jiao Huang and many others are well known for their talented performances. Wang Luoyong is the first Chinese ever to act main roles in musicals on Broadway in the United States. Directors Hu Weimin, Wang Fulin, Ma Ke, etc. have made their names in their own fields such as the spoken drama, television and Chinese traditional opera. Sha Yexin, Chen Zufen, etc are famous playwrights. Gong Hede, Cui Kedi, Li Rulan, etc have been working in the fields of art education, arts management, mass media, etc. Their efforts and success contributes to the pride and glory of the Shanghai Theatre academy for half a century.