A grant of almost £1m will help pay for the expansion at one of the region's most popular visitor attractions.
The East of England Development Agency (EEDA) is giving £998,000 to the £25m AirSpace project nearing completion at Duxford's Imperial War Museum.
The grant, bringing EEDA's funding for the project to almost £2m, is for a new exhibition space with a learning centre and a conservation area.
AirSpace is expected to officially open to visitors in June 2007.
EEDA chief executive David Marlow said: "The museum already contributes nearly £14m to the local economy.
"By improving the facilities and exhibitions on offer we hope it will bring further benefits to the region, including an estimated 25,000 additional visitors within its first few years of opening, the creation of new jobs directly and indirectly and a range of new learning opportunities."