The Art Academy of Peking University was the first educational institution that formally fixed drama courses into its educational programs during the 1930s. Its drama department was set up in the autumn of 1925 by the director Zhao Taimou and then named the Drama Department of Peking Art School.

In 1926, the Peking Art School changed its name to the Art Academy of Peking University, and appointed Xiong Foxi (1900-1965) as the director of the drama department. It was Xiong Foxi, who engaged in the theater in early years and was an active supporter of the drama movement that first introduced modern Chinese drama into the classrooms in Chinese universities.

Under Xiong's guidance, the drama department staged 12 public performances, all of which were quite well received. Some of their works were: Dr. Sun Yat-sen (by Xiong Foxi), Oppression (by Ding Xilin) and A Group of Ghost (by Ibsen).

The Art Academy of Peking University had the longest history among all the drama institutions established before 1930s. It was closed down in 1933.