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:
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