In the '70s and '80s the club became a hangout for "a new breed of politicized drag performers" like Lypsinka, Lady Bunny, and RuPaul, whose first New York City show was at the Pyramid Club in 1982 ^{[citation needed]}. On Labor Day 1985, Pyramid performer Lady Bunny hosted the Wigstock Festival in Tompkins Square Park.^[2] Andy Warhol and Debbie Harry dropped in the Pyramid to do a feature on the club for MTV, and Madonna appeared at her first AIDS benefit at the club. Both Nirvana and Red Hot Chili Peppers played their first New York City concerts there.^[3][4] From 1992–95, Blacklips Performance Cult, a collective founded by ANOHNI, presented plays at Pyramid every Monday at midnight. Keith Haring was also a frequent patron.^[5]

In 2007, it was proposed that 101 Avenue A, the Pyramid Club's building, be landmarked. The proposal, described as the first "drag landmark", was not adopted by the New York City Landmarks Preservation Commission (LPC).^[6] However, in the spring of 2011 the LPC proposed a new historic district in the East Village focused around lower Second Avenue and encompassing 15 blocks and 330 buildings. The original proposal excluded buildings such as the Pyramid Club, but because of efforts made by local community groups, the proposed district was expanded to 101 Avenue A as well as other similar buildings. The LPC designated the club as part of the East Village/Lower East Side Historic District on October 9, 2012.^[7]

The club shut during the COVID pandemic in 2020. It unsuccessfully reopened under different management for a short period after, but subsequently closed permanently. The new owners confirmed that it would reopen in the summer of 2023 as Baker Falls, a community-driven rock club.^[8] Baker Falls opened in July 2023.^[9]