Theatre in Germany plays an essential role in society and public life, often mirroring contemporary conflicts and debates. In post-Wall Germany, the subject of diversity and theatre needs to be considered with an eye to three different areas: the coexistence of independent and municipal or state theatres; the unification of East and West Germany in 1990; and the question how we conceive of ‘German’ theatre in an increasingly multi-ethnic society. This chapter explores those three areas, and provides some insight into theatre’s place, achievements, and challenges in the Berlin Republic.