Apart from television, Wagstaff remained active in his first love, the theatre. In late 1979 he appeared again as Professor Higgins in "My Fair Lady" and a successful national tour followed in which he was also a co-producer. About this time he also produced Sydney and Melbourne seasons of the American stage comedy "Father's Day". In 1981 he toured as the narrator in the successful "Rocky Horror Show" starring Daniel Abineri and repeated this with a second tour a few years later which featured Russell Crowe. In 1982 Wagstaff appeared in a leading role in the play "Noises Off" which had a successful national tour. In 1983 he played the lead in "Blithe Spirit" at Marian Street Theatre in Sydney and then went on to host the "Midday Movie" and "Friday Night Movies" on the Seven Network for two years.