£99,483 of funding is set to go to Bayfield Car Park.
The project, coming from the the Highland Council, Portree & Braes Community Trust and the Portree Tennis and Squash club, aims to provide enhanced parking facilities and alleviate pressure on existing infrastructure.
The funding comes from a £2.3 million investment to benefit town centres across the Highlands.
Bayfield Car Park is one of 30 projects to benefit from the Town Centre capital grant fund.
The fund is targeted at towns and city centres to help them diversify, flourish and attract a greater footfall.