Work on improving the centre of Douglas will be getting under way in the next few weeks.
The scheme will be carried out in phases and is part of the government's regeneration scheme for towns and villages.
The project includes new paving, street furniture and lighting, and the first section to benefit will be Nelson Street in May.
The government's regeneration fund is paying for the work, with the borough council contributing an extra £2 million.
Mayor of Douglas Ritchie McNicoll hopes it will encourage more shoppers into the town centre:
'Parks in worse state then when I started' says Peel commissioner
Ferry terminal to become part of wider North Docks transformation
Renewed calls to make it easier for taxis to have CCTV on the IoM
IOMPO will go from 'strength to strength' in coming years says outgoing chair