Originally a host to regular, strictly alcohol-free dances, the venue has always been a a popular local fixture. Its transformation to St. K's in the 1980s saw the dances continue while housing various community arts groups and a vegetarian restaurant.
The decision was taken by Aberdeen City Council at the start of the 1990s to create a permanent home for the burgeoning audience attending the city's rock, theatre and comedy Alternative Festival held annually. In 1992 The Lemon Tree was born, named after the pub which had existed on the site before the building of St. Katharine's.
The Lemon Tree is operated by Aberdeen Performing Arts, a charitable organisation which also operates and manages the Music Hall, His Majesty's Theatre and Aberdeen Box Office.