The funds will be used to improve the waterfront’s entertainment venue and some side streets.
As well, new heritage murals will be painted and a feasibility study will look at setting up a new market.
The improvement project, led by the Yarmouth Waterfront Development Corp., will also see improvements to Wi-Fi infrastructure and website development.
Greg Kerr, Tory MP for West Nova, made the announcement Thursday.
The money comes from the Atlantic Canada Opportunities Agency.