Initial support of £202,981 has been awarded by The National Lottery Heritage Fund to help progress the project.
Causeway Coast and Glens Museum Services also aims to apply for a National Lottery delivery grant of around £1.6 million at a later date.
The Council aims to carry out an enhanced community engagement programme along with a number of developments to extend the museum's opening season, benefiting both the local community and visitors alike, and to improve accessibility to the museum building and its collection.
The 18th century, Grade B+ listed building will be restored and extended, allowing for the creation of new gallery, workshop, and public research spaces, as well as accommodating accessible toilets and lifts. New interpretation will be provided of the area's heritage, exploring the archaeology and history of Ballycastle from earliest times, through the creation of the 18th century industrial town, to the Arts and Crafts Revival movement, local folklore, and more recent social history.
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Mayor of Causeway Coast and Glens, Cllr Ivor Wallace, said: "We're delighted to have received this support thanks to National Lottery players. The conservation-led restoration of Ballycastle Museum will create a new, accessible, museum destination in the town to showcase our area's unique heritage.
"Restoring the listed building will revitalise this part of the town and help broaden the attraction of the high street. This project presents a wonderful opportunity to fulfil our vision of a thriving, well connected and vibrant Ballycastle that capitalises on its setting and distinctiveness and unlocks ambition and positive regeneration across the town.
"Working with local people, the project will allow us to breathe new life into a museum and heritage hub that will support accredited training programmes and other volunteer opportunities."
Stella Byrne, Head of Investment at The National Lottery Heritage Fund added: "Investing in heritage means investing in the community it belongs to, which is why we are proud to support Causeway Coast and Glens Borough Council to develop their plans to reinvigorate and expand Ballycastle Museum.
"This project shows great potential to benefit the local community and visitors to the town and be a catalyst to boost the local economy and regenerate Ballycastle's Conservation Area. Improving access and space at the museum would provide the opportunity to expand its opening hours, visitor numbers and reach new audiences."
