Shakespeare set “Twelfth Night” in a mysterious, faraway place called Illyria, which for centuries has given lots of latitude for interpretation. Director Nancy Carlin has located “Twelfth Night” in Pepperland -- the peaceful, bright-hued setting of the film “Yellow Submarine.” The costumes are colorful eye-candy, resembling something out of “Sgt. Pepper.” And the show features an original score that deftly recalls the Beatles’ mid-60s infatuation with transcendent psychedelia. . . 

(music)

. . . and sweet nostalgia for an older English sound.

(music)

All of this is a very nearly perfect match for the indulgent mood of Shakespeare’s script. “Twelfth Night” is a play that features a few mood-altering substances, abounds in unlikely but happy coincidences, and focuses on people who fall passionately in love, moving them to speeches like this.

(Megan Smith excerpt)

That’s actress Megan Smith as the plucky Viola. This smart but relaxed, slightly trippy production of “Twelfth Night” is fine entertainment for a summer evening, and the show continues as part of the Lake Tahoe Shakespeare Festival through August 20.