Just under €50,000 was awarded to a local town team under the Community Climate Action Programme.
Castlerea Town Team will use the money to retrofit the community space known as 'D Gaff' on Barrack Street in the town.
The funding was part of a €27 million announcement by Minister Eamon Ryan earlier this week aimed at community groups.
Local Fine Gael councillor Gareth Scahill says the facility is used by a number of groups in Castlerea.
Speaking to Shannonside News, Cllr Scahill explained how the funding would be utilised: