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The Children and Youth Theater "Atžalynas" began its activities in 1979, although the true inception was in 1976 when Algimantas Verbutas, a former student of Klaipėda faculties at the Lithuanian Conservatoire, founded a drama studio for students at the Kretinga Culture Center. Later, former members of Atžalynas, Auksė Antulienė in 1996, and Karolina Uksaitė (now Moncevičienė) in 2015, took on the role of directors.

In 1979, the first children's theater festival was organized, evolving in 1990 into the international Children and Youth Theater Festival "Atžalyno scena." In 2022, the festival - the creative laboratory "Atžalyno scena" took place for the 21st time, making it one of the most prominent and well-known festivals in Lithuania. In 2016 and 2023, the Youth Theater Festival - Creative Laboratory "Atžalyno scena" was awarded a diploma by the Lithuanian Amateur Theaters Union and the Lithuanian National Culture Center for the "Most Outstanding International Theater Festival in Lithuania."

Over the 45 years of creative activity, the theater has staged over 60 performances, participating in various international festivals both in Lithuania and abroad (Estonia, Ukraine, Belarus, Germany, France, Denmark, Latvia, Italy, Belgium, Russia). The collective's performances have received numerous awards, becoming laureates of the Lithuanian Children and Youth Theater Review - the competition "Šimtakojis" and various other festivals in Lithuania and abroad. "Atžalynas" has organized and hosted numerous regional, national, and international events.

In 2002, the Children and Youth Theater "Atžalynas" was recognized as the best children's theater in Lithuania and awarded the "Aukso paukštė" (Golden Bird). In 2014, "Atžalynas" was honored with a diploma from the Lithuanian Amateur Theaters Union and the Lithuanian National Culture Center as the "Most Outstanding Promoter of Youth Theatrical Culture." In 2023, "Atžalynas" received the Culture and Art Award from the Kretinga District Municipality for exceptional dedication to nurturing and presenting the performing arts, representing the region internationally.

Today, two directors specializing in acting, stage language, directing, and movement fundamentals instruct approximately 50 children aged 10 to 19 from various schools in Kretinga city and the surrounding region.

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