The Municipal Theater of Lima was inaugurated on 28 July 1920 as the Forero Theater and was acquired by the Metropolitan Municipality of Lima in 1929. On 2 August 1998 it was partially destroyed by fire. The damage to the audience area was minimal, allowing complete restoration. However, the stage was destroyed, which required a complete reconstruction. The Municipality of Lima launched a project competition for its reconstruction and restoration the results of which were known in 2001. One of the objectives was the correction of well-known acoustical defects, which had been never solved. The results of computer simulations of the original theater with a commercially available ray-tracing-type computer program will be presented, showing its acoustical evaluation and available options to correct the acoustical defects. The acquisition of five lots around the theater site will allow increases in the fly tower, the dressing rooms, the pit, and the shops. There are plans for the modernization of the technical and mechanical services, the accesses, the air-conditioning system, and security as well. These modifications will allow all types of presentations of contemporary arts. Retaking its position as first in the national scene, the Municipal Theater will be able to house sophisticated national and international performances.