Stromness in Orkney has been awarded £1.44m to help regeneration.
The funding, from the Heritage Lottery Fund, is for the Stromness Townscape Heritage Initiative (THI) project.
It will cost almost £4m, with the remaining funds coming from the islands council, Historic Scotland and the European Regional Development Fund.
Several potential projects have been identified in the bid, including the opportunity to restore key buildings and sites in Stromness.
Council vice convener James Stockan said: "I'm so pleased that we have secured the THI funding and I congratulate the project team as I know that a huge amount of work went into the funding submission.
"Stromness has seen a lot of changes recently and the project will bring many benefits to the town. The improvement to some of our older buildings is something which I personally look forward to seeing and is something which I think will have a very positive effect on the area."
Colin McLean, head of the Heritage Lottery Fund in Scotland, said: "Stromness town centre is hugely important as it is one of the best surviving Norse settlements in Scotland. Sadly many of the old buildings that once gave it its character are now badly neglected.
"By breathing new life and uses into these buildings through the Heritage Lottery Fund's unique Townscape Heritage Initiative programme, the town will become a more attractive place to live, work and visit."