In 1950, the founders of the Yunnan Song and Dance Theatre set out for the province's mountainous borderlands. They carried heavy bedrolls and wooden prop boxes on their backs, walking into remote villages to record the music of twenty-five indigenous ethnic groups. From these journeys came the rhythmic steps of the Axi Tiaoyue dance and the clear, floating melody of the folk song The Murmuring Brook, which singer Huang Hong brought to national prominence in 1953. In 1956, soprano Du Lihua was honoured as a "Young Singer" by the Central Propaganda Department and the Ministry of Culture for her outstanding performances. Later, actress Yang Likun captured global attention in the 1964 musical film Ashima, cementing the troupe's reputation.

This history lives inside the Dream Theater at No. 49 Beimen Street in Kunming. Rebuilt and renamed over the decades, the current intimate venue continues to host a wide range of performances. At its center is a modern stage equipped with advanced lighting and sound systems, backed by a high-definition LED screen. The physical structure operates as a bridge between local traditions and global stages. In 2010, the theater transitioned into a corporate model, eventually exporting its theatrical expertise to Cambodia to create the long-running resident show The Smile of Angkor.