Fife Council says work has started on repairing Inverkeithing Town House, with its revamp worth £1.5 million.
A "vibrant" hub managed by the local community is also being created, according to the local authority.
The project is part of the wider Inverkeithing Heritage Regeneration scheme, which is being delivered by Fife Historic Buildings Trust and the council.
Funding is coming from Fife Council, The National Lottery Heritage Fund, Historic Environment Scotland and the Scottish Government.
The aim is for the work to be completed by February next year, with its opening due to take place next summer.
Lorraine Bell, Manager at Fife Historic Buildings Trust, said: "The Town House project will create accessible community use spaces in the town centre, and also repair this landmark A listed building to safeguard it for the future.
"The Town House will be a busy space again, used by all generations in the town centre for meetings, birthday parties, exhibitions, dance, and much more.
"Contractors are on site carrying out repairs to the historic fabric and hope to be finished by February 2023.
"A new lift is being installed to ensure that the Town House can be enjoyed and used by everyone.
"There are archaeologists on site who are sensitively managing excavations in the graveyard, which are necessary to install the lift."
Once the contract is completed, the council will carry out works to the pavement outside and a new community Scottish Charitable Incorporated Organisation (SCIO) set up to manage the building will complete the fit-out.
All nearby shops, takeaways, cafes and businesses will remain open throughout the works.
Councillor David Barratt, Convener of the South & West Fife Area Committee, said: "It’s great to see work start on the Town House.
"Local people have been involved in the design proposals for the building over many months, and their contributions have made a huge difference.
"The new local organisation who will manage the Town House is also looking for support from anyone who would like to get involved.
"If you think you can help with marketing, income generation – or anything else – they would love to hear from you."