The local Business and Tourism group had sought planning permission for a number of changes to the Tholsel building in the heart of the town.
The building on Fethard's Main Street is owned by Tipperary County Council but is on a 20 year lease to Fethard Business and Tourism Ltd.
They aim to make the former Town Hall a tourism hub which will be a historical and cultural focal point for Fethard
The local authority has now granted permission for a change of use from residential to an exhibition space on the second floor.
Another change of use for part of the ground floor from a café to an exhibition and retail space has also been approved.
The 17th century landmark site has previously served as an almshouse, the town hall for Fethard Corporation, a fire station, library and is currently used as the venue for weekly country markets every Friday.
Almost quarter of a million Euro in Government funding was announced for its development in 2014 which was backed up by over €100,000 from the local authority under the community grants scheme.
