Lay carpet down throughout the room. Carpet is an effective material to absorb sound waves that bounce off of smooth surfaces.
Check the walls and ceiling in the theater to ensure the walls are properly insulated. In addition to keeping the air either cold or warm (depending on your house's environmental settings), insulation works to dampen sounds you would otherwise hear.
Spray a thin layer of acoustic plaster on the walls of the theater. Allow the plaster between 30 and 45 minutes to dry before continuing.
Place rough-surfaced materials on the walls of the theater once the plaster has dried. If money is no option, stores such as Lowe's or Home Depot have materials specifically designed to soundproof walls. If you are on a budget, use extra carpeting or even cardboard egg cartons.
Apply a layer of acoustic plaster on the ceiling of the theater. If you live in a single-story home, consider skipping this step, although it is still recommended.