The theater was one of several theaters in Wailuku, and was named after a small bait fish named the "iao." Aside from screening movies, the theater also hosted live onstage performances. Notable events included appearances by Bob Hope, Betty Hutton, and Frank Sinatra for USO shows during World War II, plus showed such movies as "Rio Rita", and the X-rated film "Deep Throat" (which got the theater owner arrested). In 1953, the Hawaii debut of "From Here to Eternity" was staged at the Iao. A snack concession was run by Harry Kaya for almost 40 years, from 1930 to the mid-1970s, called Harry's Sweets. The location was just outside the main theater entrance. Local Hawaiian music artists such as Kealiʻi Reichel and Amy Hanaialiʻi Gilliom also gathered experience at the Iao.