Jim Schaefer was the founder and Artistic Director of the Port Stanley Summer Theatre, which provided community entertainment in the Village Hall using local themes, actors and staff for thirteen years. When Mr. Schaefer left the Summer Theatre in the early summer of 1991, a group of interested citizens stepped into the void, elected a Board of Directors, hired Pat Spadini as Artistic Director, and launched an "Emergency Season". During this period, two touring shows, each of which ran for za three week period, filled the gap. "Pinchpenny Phantom of the Opera", a musical comedy and "Laughing Wild", a tragicomedy, kept theatre alive in the village and the Board started to look forward to 1992.

The inaugural season of 1992 was really the beginning of what has become known as the Port Stanley Festival Theatre. At that time a set of by-laws was prepared, the theatre was incorporated, a charity number applied for, and an executive elected. Pat Spadini continued as Artistic Director. The maiden season was comprised of all Canadian works beginning with "Up the Creek", an original production written by local playwright, Mike Mulhern, "Toronto, Mississippi" (Joan MacLeod) and "Salt Water Moon" (David French) which delighted the audiences and encouraged the new Board to prepare for another season.