The Lycurgean Period (the period during which Athens was under the financial governance of Lycurgus) saw further developments for the theatre.
 
Lycurgus died in 324 BC, a year or two before the birth of Menander, and the period of theatrical history currently under consideration is, roughly speaking, that of the Middle Comedy or Later Tragedy.
 
Lycurgus had supreme control over public finance in Athens from about 338 to 326 BC, and it was probably during these years that he played an important part in the building of the theatre. Documentary evidence surrounding these developments, however, make it clear that Lycurgus only completed what others (most notably Pericles) had begun.
 
It cannot be determined with absolute certainty whether the theatron that Pericles had begun and Lycurgus finished refers to all the buildings connected with the theatre or only to the stone theatron that undoubtedly dates from this time. The precise share that Lycurgus himself took in the extensive works carried out in the latter half, or third quarter, of the fourth century is not really a matter of great importance.
 
What really matters is the work done on the theatre; and the main developments of the Lycurgean period were the construction of a stone auditorium (in place of the old auditorium of earthen embankments and wooden seats) and the building of the first permanent skene and stage buildings in stone.
 
The auditorium built under Lycurgus is largely what remains to be seen today (although minor alterations were subsequently made which mainly affected the front row of seats). As the work progressed the double wall on the western side of the theatre must have been continued quite some way northwards, but it is uncertain exactly how far northwards the Lycurgean auditorium went.
 
The new auditorium was divided by twelve narrow stairways (each of which was 60 cm wide) into thirteen wedge shaped blocks or kerkides; two other staircases (making fourteen in all) ran up inside the two southern supporting walls. The staircases differed in one respect from those found in most Greek theatres: instead of giving two steps to each row of seats, they only gave one, which was sloping, so as to reduce the height of each step above the one below it. The front edge of each step was also about 8 cm lower than the back, and the perpendicular height of each step in front was thus reduced to about 23 cm. The surface of each step was also roughened (with parallel grooves) to save the spectators from slipping.
 
The stage buildings or skene of this period were also substantially altered in that they were made permanent and changed from wood to solid stone. Their foundations are largely preserved and we can make informed guesses as to both their shape and function (see the bibliography for further reading on the Lycurgean stage buildings).