The Light Cinema, which plans to open its doors later this year, was granted planning permission for an enclosure across its café and restaurant terrace as well as a screen which will go on the external wall on the back of the cinema.
The enclosure's roof will be retractable, meaning diners will be able enjoy the sunshine when it appears while providing the facility with the same capacity when the weather is not so good.
It is the latest part of a development that will see The Light develop 55,000 square feet of entertainment space over three floors, including a cinema, 10 bowling lanes, a retro arcade, mini golf and the terrace restaurant and bar.
The application, which was granted unanimous approval by Cherwell District Council’s planning committee this week, also included the installation of green walls - permanent structures that are covered with plants or greenery.
Councillor Cassi Perry (Lab, Banbury Cross and Neithrop), who represents the ward, said: “This is probably the most exciting bit of the development and we have not been allowed to talk about it for years so it is great that it is out there now.
“That area is specifically designed for big events, sporting events, big cultural things and designed to be adaptable so it can go undercover in bad weather or come outside.
“No doubt many, many happy memories are going to be created from the events there.”
Castle Quay Waterfront already features a Lidl supermarket, a Premier Inn hotel and The Lock29 which provides facilities for various traders as part of the ongoing transformation of the waterfront.