Butterfly Theatre's shows in Poole’s Cavern have become something of an institution at Buxton Fringe. They're usually Shakespeare, but not always – and this year, with Alice in Wonderland, Butterfly have chosen a work for which an other-worldly atmosphere is essential. There could be no better match for the stalactites and stalagmites of a show cave.

Given such a remarkable setting, it's important to work with the space and not let it overpower the performance, and Butterfly achieve this handsomely. The trademark of this production is the use of the cave’s acoustics, paired with the movement of the cast: one group chants and echoes into the distance as they run in fear from the Jabberwock, while a commotion elsewhere alerts us to a new scene.

The use of the space begins in the visitor centre outside, as the Cheshire Cat insinuates herself among the gathering audience, before revealing herself and bringing us into the cave and Wonderland. Charis King has a difficult role – actress, master of ceremonies and guide – but she handles all these tasks with apparent ease. Her feline presence slips in and out of scenes, occasionally lying half-forgotten at your feet, and I liked the style with which she managed the crowd. The “little humans” always got to the front, and they would dash off after her as we moved on.

There are so many different versions of Alice; this production plumps for a quest narrative, built around Alice’s mission to reach the eighth square and become a queen, in the hope she'll then get back home. As Alice, Susan Hoffman brings just the right levels of innocence, earnestness and integrity, helping us to care about her progress through the array of grotesques that she meets. It’s very much an ensemble performance, but Alexander Gray deserves particular praise for his energetic and funny portrayals of the Duchess and the Mad Hatter.

Poole's Cavern is such a distinctive setting, and the shows here such an institution, that it's impossible not to compare Alice to the various productions that Butterfly have brought here down the years. They share a few perhaps-unavoidable problems: occasionally the acoustics work against the performers, making dialogue hard to follow, and it gets harder and harder to do something genuinely new against an increasingly familiar backdrop (though I think director Nicholas Humphrey found a new spot for the second appearance of the Tea Party). One self-inflicted issue is that the show overran by 25 minutes on its advertised hour, which left me with a mad dash and apologies to make at my next show.

But Butterfly’s performances underground in Poole’s Cavern have become a fixture for a reason – they’re good. Alice in Wonderland is a worthy addition to the list, inventive and fun, and making great use of a superb setting.