The Coronado Theatre opened on 9 October 1927, after $1.5 million was spent on its construction. The theatre’s name and its slogan, “Rockford’s Wonder Theatre,” was chosen after a contest sponsored by the Rockford Register-Gazette. The Coronado Theatre was a first-run house.

The theatre was wired for sound and presented its first sound film, Mammy (1928) — Al Jolson’s second sound feature — in 1928.

The theatre was purchased by Kerasotes Theatres in 1970, and stopped presenting motion pictures in 1984. The Coronado was listed on the National Register of Historic Places in 1979, and was listed on the State of Illinois Register of Historic Sites in 1980.

On 21 November 1997, Kerasotes Theatres donated the Coronado to the Rockford community and the theatre was listed on the National Register of Historic Preservation. The theatre was preserved and renovated in 2000 in preparation for the presentation of touring theatre shows.