Work to create a riverside park under Trecelyn Viaduct will get underway this month as part of the Newbridge Development Programme.
Phase Three of the programme will see the land developed for use by the public.
Facilities will include a cycle track, an outdoor gym, new seating and lighting.
Landscape improvements to the footpath from the town centre to the park will also be carried out.
There will also be kerbing, paving and resurfacing works along Bridge Street and its junction with lower High Street and North Road, with planned improvement works also to the junction at the leisure centre and Newbridge School.
The project has been part-funded by the European Regional Development Fund through the Welsh Government.
Cllr Ken James, Cabinet Member for Regeneration, Planning and Sustainable Development said:“The council continues to work hard alongside our communities on programmes of investment and it is fantastic to see Newbridge is benefitting from further European funding.
“The regeneration programme to date has already delivered major benefits to the town, and I have no doubt that the works as part of phase three of the programme will continue to build on this success.”