The six-week first phase of the reconstruction of the pedestrian-friendly area was completed at the end of last year.
It saw an upgrade of the area between Market Street and the Town Hall Square.
A second 10-week phase is now underway to complete the upgrade from the Town Hall to the trunk road at the junction of Trail Street - Olrig Street.
The Council agreed to bring forward the spending from the 2009/10 budget to ensure the contract was completed in one project.
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The works include replacement of the existing concrete paviors with Caithness flagstone outside the shops and reconstruction of the access road to the shops edged with coloured paviors. New street furniture is being installed to replace old benches and the existing street lighting columns, planters and bins will all be refreshed.
The work is being carried out by John Gunn & Sons Ltd, Lybster. It has been jointly funded by The Highland Council’s Transport Environment and Community Service and Planning and Development Service through their programme for economic regeneration.
Councillor John Rosie, member for Thurso, said he was delighted that the pedestrian precinct was being given a timely facelift.
He said: "This is really good news for the people of Thurso. We have followed the wishes of the local community by completing this work in one project at a time that causes the least disruption to shoppers and shopkeepers.
"The upgrade will complement the refurbishment of the Town Hall and will undoubtedly help reinvigorate this important area of Thurso."
(GK/JM)
