At first the term Purim-shpil was used to define a monologue during which the performer sometimes appeared in costume. The monologues were mostly rhymed paraphrases of the Book of Esther, as well as parodies on liturgical and other holy texts, such as a "kiddush" or a "sermon" for Purim, composed to entertain the audience. Together with the more complex forms, the monologue form of Purim-shpil continued to appear in Eastern Europe until World War II. Manuscript fragments and other evidence from the second half of the 16th century attest the gradual enlarging of the Purim-shpil to include presentations by several performers. Other fragments show evidence of growing complexity in dramatic expression blended with the traditional parody. Judging from the extant material it is probable that during the 16th century and until at least the mid-17th century, the subject matter of the Purim-shpil was drawn from contemporary Jewish life and was based on well-known humorous tales. This type of Purim-shpil also survived in Eastern Europe until World War II.

The Purim-shpil in all its varieties was usually presented in private homes during the festive family meal; the performers, who wore masks or primitive costumes, were generally recruited from among yeshivah students. In the course of time the Purim-shpil became the object of competition between groups of performers recruited not only from among students but also from among apprentices, craftsmen and mendicants; even professional entertainers saw in the Purim-shpil a field for their activity. By the 16th century, the prologues to the Purim-shpil had developed a conventional form, which included blessings for the audience, an outline of the contents of the performance, and an introduction of the actors; conventional epilogues had also developed, including parting blessings and appeals for an ample reward. Like the Fastnachtspiel, the Purim performance was introduced, conducted, and concluded by a narrator (leader of the performance), traditionally called loyfer, shrayber, or payats, and, as in the Fastnachtspiel, profanity and obscenity of an erotic nature are outstanding elements of the humorous effects.

As early as the beginning of the 18th century, the biblical Purim-shpil reflected many trends of the contemporary European theater in its literary style, choice of subject, and scenic design. Previously marked by extreme brevity, not exceeding a few hundred rhymed lines, and by the limited number of performers, the Purim-shpil became a complex drama with a large cast, comprising several thousand rhymed lines performed to musical accompaniment in public places for a fixed admission price. Nonetheless, the plays maintained a connection with Purim and were performed during the appropriate season.