Prljavo kazalište was formed in 1977 in Dubrava, part of Zagreb, the capital of the then SR Croatia. Founding members included: Jasenko Houra (rhythm guitar), Zoran Cvetković a.k.a. Zok (lead guitar), Nino Hrastek (bass guitar) and Tihomir Fileš (drums). Its first vocalist became Davorin Bogović, although they were thinking about taking Davor Gobac (later of Psihomodo pop) instead. All of them, except Houra, previously played in another band called Ciferšlus (Zipper), but after he joined them to form a new group, they opted for the name Prljavo kazalište after an episode of the satirical Italian comic book Alan Ford, which was very popular in the former Yugoslavia.
In its early beginnings, Prljavo kazalište's was a Punk band, although they initially wanted to sound like The Rolling Stones for whom they maintained a great admiration. The group performed live for a first time in 1978 at a gig organized by the magazine Polet where they were noted for their furious punk image and stage performance. In the same year, Prljavo kazalište released its first single, the punk rock sounding Televizori for the major record label Jugoton. It featured three songs: Televizori, Majka and Moje djetinjstvo. In 1979, Suzy Records released their second single Moj je otac bio u ratu. That song was included in the compilation album Novi Punk Val compiled by Igor Vidmar, along with Pankrti, Paraf and other prominent artists of the former Yugoslav Punk scene.In the 2000s Prljavo kazalište released a four audio CD box set titled Sve je lako kad si mlad (not to be confused with the previously mentioned live album with the same title). Its record sleeve again featured the band's logo, but this time on a white background as it was on the first album.
In 2003, the band took part in the rockumentary Sretno dijete which covers the former Yugoslav New Wave scene and features many eminent former Yugoslav rock acts from Zagreb, Belgrade and Ljubljana.