Milton Keynes College Group has been awarded a grant of more than £3 million from a new government scheme.
The cash comes from the Government's Post-16 Capacity Fund and will be used to extend, refurbish and repurpose college buildings for the engineering and construction department.
The fund was launched last year and is aimed at improving facilities for students aged between 16 and 19.
The work will take place on the college's Chaffron Way campus to help cope with a predicted increase in student numbers.
Liana Sinclair, Group Head of Estates, said: “The success of this bid is a real vote of confidence in Milton Keynes College Group by the Department for Education as by no means every college around the country that applied has been awarded the money they wanted.
"In recent years we’ve had to limit the number of students we can accept onto Engineering & Construction courses because of the sheer lack of space in our classrooms and our workshops with their industry standard equipment.
"What’s more, the refurbished buildings will be developed to very high standards in terms of their sustainability and will be on a par with the top 25% of such premises in the country.
"In the longer term the availability of increased workshop space will enable Milton Keynes College Group to develop a new curriculum which develops and adapts skills with an environmental and sustainability focus.”