The Thurso Players were gifted part of the old Thurso water mill by Lord Thurso in 1960 and used the premises as it was until 1980. The Players then embarked on a project to restore a long-derelict part of the building alongside the used part and turn the whole into a small theatre. The Mill Theatre was re-opened in October 1988 by Her Majesty Queen Elizabeth The Queen Mother. In 2010 the theatre was extensively extended and refurbished after the club was awarded a grant by the National Lottery Fund.