The new Coach House Theatre is nearing completion and due to open next weekend.
Malvern Theatre Players' new studio venue at Theatre House, Grange Road, will seat 80 and have state-of-the-art lighting and technical equipment.
"It's the kind of theatre space Malvern doesn't have at the moment and it should be a real community assett," said players' spokesman Chris Basset.
Around £60,000 has been spent on upgrading Theatre House and creating the studio stage and seating area.
It will be used for MTP productions, youth work and will be available to other groups.
The money has come in the form of grants from the Elmley Foundation, National Lottery, Arts Council for England, fundraising and private donations.
The project is in its final stages and the seating structure, plumbing and electrics are now complete.
New flooring, furniture and mirrors are due to be installed next week and final electrical and fire alarm testing will be carried out.
Work should be finished before Saturday, June 25, when the theatre will hold an open day.
It will enable members of MTP and everyone involved with the project to inspect the new theatre.
An evening reception will also be held for the project's sponsors.
The Musicians, by Patrick Marber, will be the first production to be staged in the studio theatre. This youth production by MTP will run from August 15-20.
MTP is also holding a series of workshops based on the theme of Elizabethan theatre starting this Sunday (June 19).
The summer workshops, based on 16th and 17th Century plays, will be on Sundays June 19, June 26, July 3, July 10, and July 17.
They will be run by Lee Farley and Chris Bassett of MTP and Amelia Marriette, of the Shakespeare Institute in Stratford.
Mr Bassett said the workshops, which will provide opportunities to learn and develop acting skills, will give the opportunity to try out the new studio theatre as a performance space.
More details about the workshops are available from Theatre House on 01684 569011.
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