Islands projects are set to benefit from nearly £4m funding as part of an economic package announced on Wednesday.
Funding of £1.6m over two years is to be provided to Historic Scotland to allow for repairs to Lews Castle in Stornoway.
The cash will be used for external stonework, the roof as well as for the fine plaster and timber work inside.
Lews Castle, which has been empty since 1998, has had long term problems of water ingress and structural instability.
The funding was announced by finance secretary John Swinney on Wednesday as part of a £105m package of economic stimulus for Scotland which includes investment in the island projects.
He also pledged a further £2m of funding for manufacturing site Arnish plant which will go towards upgrading the yard.
Culture secretary Fiona Hyslop said: "This investment is enabling the castle to be developed as a hotel and museum, maintaining public access while allowing the main rooms of the castle to be used as reception rooms, and in a financially sustainable way."
Western Isles Council has welcomed the announcement.
Leader Angus Campbell said: "This is an extremely welcome announcement of £1.6m for the Lews Castle project and this additional funding means that we can move ahead to tender the main works, enabling a start in early 2013 and aiming for completion in 2014. We still have an application in for ERDF funding to complete the package and we would hope to hear the result of that later this year.
"An advance programme of exterior repair works to the castle is currently on site and these will be completed by the end of the year. At a time of serious economic austerity, this project will be an important economic driver and restoration of the castle combined with a new museum featuring some of the Lewis Chessmen will provide a world class attraction."
An announcement of £2m for the Arnish yard was also welcomed. Mr Campbell added: "Renewable energy has the potential to provide a stepchange in the economy of the Western Isles and Arnish is an important renewables manufacturing site providing local employment. This money will help in upgrading Arnish which will attract more investment."