The Clyde Cinema, next to the Clyde Bistro, is part of a development spearheaded by builder Mark Laing, of Clyde, and Kevin Braid, of Dunedin.
The Smyth family of David, Karen and son Sam, also of Clyde, run the bistro and will be running the cinema too, with Sam as manager.
Sam Smyth said the opening was timed well relative to the Oscars. Silver Linings Playbook and Lincoln were screened on Thursday night.
He said he intended to have four screenings per week day and five daily on weekends.
Construction of the cinema began about three years ago but was stalled by the recession. Work had resumed in October.