The House was built for an Aberdeen advocate in 1880 and became one of Pitlochry's finest houses with over four acres of gardens, an inner courtyard, gate house and coach house. No expense was spared during its construction as can be seen from the house's grand entrance porch with stained glass windows, a feature that was also used on the main staircase. Another important feature of the house is the plasterwork mouldings of the ceilings as well as the heavy arches and doors.
In 1951 the now famous Pitlochry Festival theatre was born at Knockendarroch House. Soon after, a more permanent structure followed (now a curling rink) and remained until 1981 when the theatre moved to it's present premises across the river. Until that move Knockendarroch House was both the home of Kenneth Ireland the theatre's director and also it's headquarters when the present dining room doubled as the boardroom.