The Princess Theatre - in Launceston - has been approved for 75 per cent capacity, and can now welcome up to 708 patrons at each performance.
Theatre North programs manager Stuart Loone said it felt good to have the application request accepted.
However, though the capacity restrictions have eased, facemasks will be compulsory for patrons once audience numbers hit 374.
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"Public Health have advised if we do move past that number, facemasks will be compulsory," Mr Loone said.
"We acknowledge that it's a bit of a cultural change ... but it's really important the venues complies with restrictions that have been handed down by Public Health.
"Come and give [wearing masks] a go. We acknowledge that it might be different or difficult for people, but their attendance is how we get back onto a strong road of recovery."
Mr Loone said patrons should get into the habit of bringing their own facemask to every performance, regardless of numbers.
He also strongly encouraged people to download the Check in Tas app on their mobile phones to alleviate waiting times, and staggered arrival times will continue.
Currently, Tasmanian theatres are at 50 per cent capacity, with venues of 250 people or less able to seat 75 per cent without an application.
However, larger theatres, and theatre companies wanting to use them, have to apply and have their application granted to seat up to 75 per cent.
The changes will take affect immediately, with more seating to open for current shows.