The theatre was built in 1922. The architects were the firm Shourds-Stoner of Terre Haute. A photo showing the original appearance of the theater can be viewed at the web site of the Monroe County History Center. The theater was badly damaged by fire in 1934.
In 1975, the Vonderschmitt family sold the Indiana to Kerasotes Theatres. They enclosed the upper balcony in order to install a second screen. In December 1995, Kerasotes gave the theater to the Bloomington Area Arts Council, who then restored it and reopened it in 1999 as the Buskirk-Chumley.