During the process of urban development in Greece a part of the first ancient theatre of Larissa was revealed. Today, after several expropriations and support frameworks, the theatre is fully excavated and partly reconstructed. Recently, an International Open Ideas Competition was launched for the urban regeneration of the surrounding area and the enhancement of the theatre's value and function. This paper presents the historic information of the theatre, it describes its evolution through the centuries, responding to the city's development, it investigates its acoustics based on previous measurements, noise maps, land use and the contemporary soundscape. Moreover, it discusses the competition axes and urban design approaches aiming to identify the effect of the application of design proposals to the theatre's function and future use.