The cinema located in central Kolkata's Chandni Chowk area was founded in the mid-1930s and was shut down in 2008.
"A fire broke out 2.10 am and destroyed the entire hall. As many as 26 fire tenders were pressed into service," the official said.
City Mayor and state fire minister Sovan Chatterjee rushed to the spot at around 2.30 am and ordered a forensic probe into the incident.
However, no casualties were reported.
Jyoti was built in the 1930s and was a favourite with film aficionados as it screened 70 mm films since the 1970s. Hindi films and Hollywood films used to be screened regularly in it.