As a college senior, Taymor won a year long Thomas J. Watson Fellowship that began after graduation. The Watson allowed her to travel to Japan and Indonesia which she continued independently from 1975 until 1979. In Indonesia, she developed a mask/dance company, Teatr Loh, consisting of Japanese, Balinese, Sundanese, French, German and American actors, musicians, dancers and puppeteers. The company toured throughout Indonesia with two original productions, Way of Snow and Tirai, which were subsequently performed in the United States. She met her long-time collaborator, Elliot Goldenthal, in 1980.
Back in New York from Indonesia, Taymor remounted Tirai at La MaMa in 1980. Her next project, The Haggadah, came from the desire of The Public Theater director Joseph Papp to create an annual Passover pageant that would be culturally inclusive. In 1984, Taymor worked in collaboration with Theatre for a New Audience on a 60-minute version of A Midsummer Night's Dream presented at The Public Theater. Two years later, she directed her first Shakespeare play, The Tempest, for Theatre for a New Audience. She went on to direct three other productions at that theatre, including The Taming of the Shrew, Titus Andronicus and The Green Bird by Gozzi. She later adapted Tempest and Titus into major motion pictures.