Daniel Kawczynski, MP for Shrewsbury and Atcham, took a pick-axe to brake the ground to mark the start of plans to extend Shrewsbury Muslim Centre.
The mosque has acquired a property next door which it plans to use to create a new prayer room and community centre.
Mr Kawczynski said: "I think it's very important that in Shrewsbury we cater for all the religions and faiths, and I'm delighted to be invited by the Muslim community to visit their centre, and see the expansion plans for it.
"I wish the Muslim community every success in developing it."
Mosque spokesman Sufu Miah said the centre bought the neighbouring building in 2019, but the project was delayed by the coronavirus pandemic.
He said so far organisation had raised £50,000 towards the £220,000 to carry out the work.
"When the work is finished depends on how quickly we can raise the money, but we could have it all finished by the end of the year," said Mr Miah.
He added that the group put great emphasis on integrating with other communities, and had attended a multi-faith fun day with Sikhs, Christians, Hindus and Jews at the weekend.