In 1978, two young New York actors, Howard Shalwitz and Roger Brady, had an idea for a new kind of theatre that would shake up the nation. They selected Washington, DC as the place to launch it, and in 1980, along with the help of Linda Reinisch, opened their first season in a church hall near Metro Center.

The idea was simple—pull together a group of exceptionally talented actors, mold them into a company, seek innovative scripts with something challenging to say, and find fresh approaches to acting, directing, and design. Above all, don't be afraid to take risks. This simple idea proved revolutionary. At the time, most theatres outside of New York were producing only classics and recent New York hits. Woolly Mammoth was part of a wave of new theatres determined to change that—to forge the future of the art form rather than just preserving its past.

The new company caught on immediately with local audiences and critics and within a few seasons, had outgrown its initial home and rented a warehouse along the 14th Street corridor where it continued its explosive growth in artistry, audience, and impact for 13 years. Plays premiered on the Woolly stage began to be produced in New York and across the country and Woolly's company of actors emerged as stars of the Washington theatre scene.