The inaugural Festival celebrated the official opening and dedication of the 1820 Settlers Monument Building. Operating as a living monument to the cultural heritage of all South Africans, the building contains numerous venues, from a spectacular 1000 seater auditorium to small meeting rooms, including a fully functional kitchen, banqueting area, bar and coffee shop. The Monument is the centre of operations for the National Arts Festival, the Grahamstown Foundation, SciFest Africa, the National Schools Festival, the English Olympiad, and many more! During the National Arts Festival, it is one of the main hubs of activity.

In 1974, the Festival ran for 13 days from the 8th to the 20th of July. On Saturday the 13th, the State President (then JJ Fouché) presided over the official opening of the 1820 Settlers Monument. In addition to this ceremony, the programme featured some 64 events, including exhibitions, lectures, performances and guided tours. 

Notable appearances include the late Bill Flynn, who played Johnnie in Athol Fugard’s Hello and Goodbye, and the Ikhwezi Players in My Childhood, directed by John Mclennon. Des and Dawn Lindberg gave a concert at the Rhodes University Theatre, and Professor Christiaan Barnard delivered a lecture on heart surgery at the Olive Schreiner lecture venue.