Interstate Theatres opened the Inwood Theatre on West Lovers Lane on May 16, 1947, with Red Skelton in The Show Off. The theater cost Interstate more than $200,000. Its Art Moderne lobby had terrazzo, stainless steel and stenciled glass panels of fish and sea life lit from behind by neon, and a large mural of water nymphs covered the mezzanine. Cinema Treasures calls it the most modern and best-equipped theater in Dallas at the time, and the Ridglea Theatre's National Register nomination names it, with the Lakewood, among Dallas theaters that were the most prominent buildings in their shopping centers.
For years the Inwood was a first-run house. The Sound of Music opened there on March 24, 1965, and ran 91 weeks, and in June 1975 it was the Dallas theater for the national opening of Jaws.
The theater declined in the 1960s and 1970s, and a fire in 1980 did heavy damage. It reopened a year later as a twin, and in the following year a third auditorium was built in the old balcony. The Inwood Lounge opened in the lobby in 1983 and became a popular gathering place before and after shows.
Landmark Theatres bought the Inwood in 1984 and changed it from first-run features to art and foreign films. Landmark spent more than $50,000 restoring the late-1940s look, including the murals and new lighting for the murals and the etched glass. Todd Wagner and Mark Cuban's 2929 Entertainment bought the Landmark chain in 2003. A 45-day renovation finished in January 2005 added new screens, leather seats upstairs and a concession stand opening onto the lounge. In May 2008 Landmark rebuilt the first-floor auditorium as a Living Room Auditorium, with couches, loveseats, LoveSac seating and a private bar, which it described as the first of its kind in Texas. Cohen Media Group bought Landmark from Wagner and Cuban in December 2018, when the chain had 252 screens in 27 markets. Cinema Treasures lists the three-screen Inwood as still open.