The Shropshire Council project for Shifnal, which was first agreed back in 2015, started on Monday.
Costing a total of £3.6m the plans will result in some significant changes to the town centre roads, and workers have started on Bradford Street.
One of the ideas of the scheme is to ease congestion and slow vehicles down as they approach the junction joining Aston Street, Victoria Road, Bradford Street and Market Place.
The plans, which were chosen from three options put forward by Shropshire Council, will see traffic-calming measures introduced, including replacing the Victoria Road traffic lights with a zebra crossing and raising the surface of the road.
A second pedestrian crossing will also be created where Market Place meets Victoria Road.
The scheme will also see footpath and highway improvements between south of Church Street on the A464 to the Bradford Street/Shrewsbury Road junction. Additional landscaping and public seating areas will also be included.
The work will take place in stages and the project was originally due to start in spring with a summer 2022 finish, but was delayed.
The first phase of the work takes in Broadway and Bradford junction to Aston Street, as well as the Market Street and Victoria Road junction, and is scheduled to last until October 21.