South Parade Pier was officially opened in July 1879 and was an iron Pier of 600ft in length. The Pier featured a pavilion on the head, and a landing stage to allow steamers to call on journeys between Portsmouth and the Isle of Wight. By 1902 the Pier had become a very busy structure with steamers docking up to four times an hour, and daily concert parties, performances by the South Parade Pier band, high diving exhibitions and fireworks.

However, in 1904, a serious fire resulted in a complete re-build of the Pier. The South Parade Pier Company was unable to finance such a venture and in 1906 the Portsmouth Corporation acquired the Pier for £12,327. The new Pier echoed the development of Southsea as a holiday destination and featured a large pavilion at shore end which housed a 1200 seat theatre (the Gaiety) and a dance hall and cafe, a band stand at sea end and a multitude of viewing areas protected by glass. Guests were invited to roller skate on the open deck and in the evening to dance in the open air.

In 1939, the Pier was requisitioned by the military and used as a depot. Due to concerns of the enemy using the Pier as a landing stage, the structure was breached in the middle and gunpowder canisters set on the decks ready to be exploded in the instance of an invasion. The pavilion at the shore end of the Pier did remain open for dancing except during July - September 1940 during the worst of the invasion scares and in 1944 when the Pier was used as a preparation area for the D-Day landings.

Following the end of the war, the Pier continued with entertainment for holiday makers and locals alike with summer shows such as "Showtime", dancing every evening, and a host of musical extravaganzas. Famous performers included Peter Sellers featuring in "Showtime" in 1953, Eddie Grey and Arthur English in "Ring Out the Bells" in 1954 and Reg Dixon in "Jump for Joy" in 1957.

In 1967 the Pier was purchased by Fortes Ltd and once again experienced a fire which destroyed much of the pavilion theatre. The revised Pier offered a number of different bars and entertainment areas and established the Gaiety Lounge Show Bar as a theatre for many live performers and bands such as David Bowie in June 1971, Genesis in December 1971 and Manfred Mann's Earth Band in November 1972.

In June 1974, Ken Russell utilised the Pier for the filming of his rock opera "Tommy" starring Roger Daltry, Elton John and Tina Turner. During the filming of the Pinball Wizard scene a serious fire broke out in the Gaiety, causing damage to the value of £500,000 and resulting in some of the most iconic local photographs of that decade.

The theatre venue was re-built in a less extravagant and more manageable design and in 1995 was purchased by its current owners, Leisure Parcs Ltd, a Blackpool based leisure company responsible for six Piers around the country along with a variety of other leisure venues and attractions including the Blackpool Tower and Winter Gardens.