Moat Brae House in Dumfries, where JM Barrie was inspired to create Peter Pan, will receive £300'000 towards its continued restoration.
The Georgian Town House - which faced demolition in 2009 - is now well on its way to being transformed into Scotland's First Centre for Children's Literature.
The award comes as part of £1.7 million being distributed by Historic Scotland to support the restoration of buildings as part of the Scottish Government's historic environment strategy 'Our Place in Time'.
Local MSP Joan McAlpine welcomed the award for Moat Brae. She said:
"This £300'000 is a huge step closer to transforming Moat Brae into an education centre and major tourist attraction. The Moat Brae Trust has been working hard to make this vision a reality and has come a long way since the house was facing demolition just six years ago - securing over half a million pounds in Scottish Government funding so far as well as significant sums from other funders."
"Dumfries is a hub of history and culture and it is right that the Scottish Government recognise that and invest to preserve and capitalise on that heritage for the benefit of local people.
"This £300'000 will be used for repairs and restoration of the building's interior. Once the project is complete the Trust expect to the attraction to create seven full time jobs and attract over 30'000 visitors a year."
Last year the Scottish Government helped a number of arts projects in Dumfries, including Creative Scotland capital grants for the Theatre Royal - Scotland's oldest working theatre - and The Stove.
The Big Burns Supper also recently received a share of over £300'000 Scottish Government support for Winter festivals.