Whitehaven's Rosehill Theatre is set to benefit from a £2 million Arts Council grant.
The money will help upgrade the building and improve facilities both front of house and backstage.
The theatre aims to raise a total of £4.5 million towards the plans.
A cash boost of £2m is set to transform a Cumbrian theatre into what is being called a national beacon of artistic excellence.
West Cumbria's Rosehill theatre is one of only two theatre's in the north west that are benefiting through the Art's Council's capital investment programme.
The money will enable the theatre to significantly upgrade its existing facilities. It will provide contemporary front of house, backstage, exhibition and catering facilities, more performance space, a renovated historic auditorium and a home for work with the community and young people.
It will also provide opportunities for new commercial enterprise and income generation to support a new business model and will greatly improve efficiency and accessibility within the venue. The theatre aims to raise a total of £4.5m to secure it for the future.