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:
Broadband provider's licensed revoked by CURA
UCM gives clarity over engineering course
Manx Care interim operations director to leave next month
Almost 38,000 passengers used ferry services to travel to Island during TT
Cyclists from visiting cruise ship exploring Island