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After four years the small theater company received national recognition by winning an Obie Award in New York and a Los Angeles Drama Critics Award in 1969, and then another L.A. Drama Critics Award in 1972. In 1977 Valdez co-wrote the screenplay for Which Way is Up?, a comedy starring Richard Pryor, and received a Rockefeller Foundation Artists-In-Residence grant which enabled him to write the most famous play to come out of El Teatro Campesino in 1979, Zoot Suit.
Zoot Suit was based on the murder of a Mexican American and the subsequent unfair trial of Mexican Americans or zoot suiters, as they were termed by the press in Los Angeles in the early 1940s. A musical, Valdez's Zoot Suit become one of the most popular plays to have ever originated in Los Angeles and was the first play by a Chicano to be presented on Broadway. A movie version, also written and directed by Valdez and starring Edward James Olmos, was released in 1981 and was nominated for a Golden Globe Award for Best Musical Picture.
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