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The building was originally referred to as the Dolgellau Assembly Rooms, as the upper rooms were being used as assembly rooms. During both world wars it was used to store grain. At some point, probably between the wars, a gallery was introduced and it became a cinema. At that time the building had several chimneys, the ground floor rooms and shops came right out to the pavement, and it housed a 'Lost Bell', which was rung whenever someone was lost on the peak of Cader Idris.
It then suffered major renovation, which changed its character. The date of this work is unknown, but it is probable that it happened prior to the 1949 National Eisteddfod, which was held at the hall. It is these renovations that created the 'arches' and the arcade that characterize the building today. A number of changes were made including the addition of a bigger stage and a newly refurbished green room, new toilet facilities, a new entrance and lobby, new staircases and central heating.
From the 1950s onward it became a very popular dancing hall, with both folk dancing and discos being held there, as well as other community events such as political rallies, fêtes and live performances (especially with DADS, the Dolgellau Amateur Dramatics Society).
It was the venue for the first Sesiwn Fawr in 1992, but then gradually fell into disrepair. The last dance was held at the hall in August 2000, aptly titled 'The Last Waltz', and it was used as a backdrop to the S4C film Eldra in 2001.