The drug was prescribed in the 1950s and 1960s
Victims of the thalidomide scandal will be given extra help through a £3.4m fund announced by the Scottish government.
The money will help the 55 known survivors in Scotland adapt their homes and buy specialised equipment.
Health Secretary Nicola Sturgeon said many were still battling with the disabilities thalidomide had caused.
Pregnant women were prescribed the drug in the 1950s and 1960s as a treatment for morning sickness or insomnia.
It was withdrawn from sale in 1961 after babies were born with limb deformities and other damage.
Ms Sturgeon said: "After discussions with the Thalidomide Trust, the Scottish government have committed £3.4m to assist the survivors of thalidomide.
"Half a century later, the survivors of thalidomide are still battling against the disabilities the prescribing of the drug caused.
"Now, as they become older, they are likely to need a range of assistance and adaptation to enable them to continue to live as independently as possible, for as long as possible and this funding will help them to do that."
Liz Buckle, a thalidomide survivor who lives on the Isle of Lismore, Argyll, said: "As a Scottish thalidomider, I very much welcome the positive response from our government, they have acted with integrity.
"I look forward to working together with the Scottish government to the benefit of thalidomiders and others."
Nick Dobrik, deputy chairman of the Thalidomide Trust's national advisory council, said: "In our meeting Nicola Sturgeon showed understanding and compassion to our problems."
Scottish Labour's health spokeswoman Jackie Baillie said: "I am delighted that ministers have responded to my request that they acknowledge the physical hardship and the emotional difficulties that have faced both the people affected and their families as a result of this drug.
"The money will help to buy wheelchairs and adapt their houses and cars for a phase of life they were never expected to see.
"It will also help to reduce the long-term impact on the NHS."