£198,967 has been awarded to the Skye and Raasay area and will be used on local improvements.
Highland Council say the new funding is to stimulate economic investments in Highland town centres and to help them diversify and flourish.
In partnership with COSLA, The Scottish Government have provided £50m capital to set up the Town Centre Fund 2019-2020.
Every local authority has received an allocation of the fund based on an equal weighting of the number of towns in a local authority (where a towns is a locality with a population equal to or greater than 1,000 people) and the local authority population.
The total allocation ring-fenced for Highland is £2,965,000 – the fifth highest allocation in Scotland.
Chair of the Environment, Development and Infrastructure Committee, Councillor Allan Henderson said: “The Town Centre Fund will enable us to invest in local improvements and help town centres to become more diverse, successful and sustainable.
"This could include repurposing buildings and improving access and infrastructure. What we have is an opportunity to build on work already done to develop and implement town centre action plans that will increase footfall through local improvements and partnerships."
Highland Council say local Area Committees will take on the role of identifying and recommending which projects receive funding.
Based on funding distribution methodology used by The Scottish Government but amended to give each Area Committee a base allocation and to reflect the importance that Thurso and Wick make to the Caithness community, indicative area allocations have been identified as follows:
Badenoch and Strathspey Area Committee - £265,289
Caithness Committee - £265,290
City of Inverness Area Committee - £596,901
Isle of Skye and Rasaay Committee - £198,967
Lochaber Committee - £198,967
Nairnshire Committee - £198,967
Ross and Cromarty Committee - £928,513
Sutherland Committee - £198,967