Xanadu is based on the 1980 cult classic film of the same name, which was, in turn, inspired by the 1947 Rita Hayworth film, Down to Earth, a sequel to the 1941 movie, Here Comes Mr. Jordan, which was an adaptation of the play, Heaven Can Wait by Harry Segall. The title is a reference to the poem, "Kubla Khan; or, A Vision in a Dream: A Fragment" by Samuel Taylor Coleridge. Xanadu is the name of the Chinese province where Khan establishes his pleasure garden in the poem.
With a book by Douglas Carter Beane and music and lyrics by Jeff Lynn and John Farrar, Xanadu was first given a workshop production and backers' audition at the Minetta Lane Theatrere in Greenwich Village, New York City, in January 2007.
The musical then began previews on Broadway on May 23, 2007, at the Helen Hayes Theatre and opened on July 10, 2007. Directed by Christopher Ashley with choreography by Dan Knechtges, it closed on September 28, 2008, after 49 previews and 513 performances. Kerry Butler and Cheyenne Jackson starred.
Following extended runs throughout 2009 at the La Jolla Playhouse in California, Drury Lane's Water Tower Place Theatre in Chicago and the Asian premiere in Tokyo, the Xanadu tour ran successfully from December 7, 2009, to May 9, 2010.
Internationally, the musical has run in Korea, the Philippines and Australia, as well as extensively throughout the U.S., at such theatres as Arizona Theatre Company, TUTS and Zach Theatre of Austin.