Shanklin's former library is to be demolished and replaced with a new 106-seat flexible performing arts space/studios, heritage centre and museum.
Shanklin Theatre and Community Trust is behind the plan, which has won conditional planning permission from Isle of Wight Council planners.
In recent years, the library itself moved from the single-storey stone building in Victoria Avenue to its present site in Falcon Cross Road.
Its old building currently stands empty.
During the process, three objections were lodged against the proposal.
They cited the loss of a heritage building and described the new design as an eyesore, which would not be in keeping with its surroundings.
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- See public notices in this week's Isle of Wight County Press
However, decision-makers disagreed and the Theatres Trust was among those to give its overall support to the plan.
In a statement on Facebook, trustees said: "We would like to thank all those that have supported us on our journey so far. We will of course keep you updated as we progress with the project to fruition."
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