Fitzroy Plaza will undergo a makeover to include festoon lighting and light projections following a funding boost from the NSW government.

Tamworth Regional Council (TRC) growth and prosperity director Jacqueline O'Neill said the upgrades would make the Tamworth CBD a more attractive place to visit and a space to host more events

"By strengthening the appeal of the city centre, the whole community can benefit from quantity and quality of choice and activity," Ms O'Neill said.

"It is important for Tamworth as well as the New England North West region that the city centre continues to remain the focus for businesses, community services, recreation and tourism."

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With Tamworth hoping to reach a population of 100,000, Ms O'Neill said the new lights tied in with TRC's goals - set out in the Blueprint 100.

"This project ties in with a number of Blueprint 100's key themes including 'Creating a prosperous region' and 'Celebrating our culture and heritage'," she said.

"Increasing visual appeal, and improving functionality and atmosphere in Fitzroy Plaza benefits the whole Tamworth CBD through the attraction of people, and increases the area's appeal for business.

"As the city centre serves both a significant urban population as well as an extensive rural area, and provides for the needs of the community, visitors and tourists, a healthy and vibrant CBD is key to the region's future prosperity."

The lighting is also said to be a homage and celebration of Tamworth's heritage, that being the first city of light.

Tamworth MP Kevin Anderson said the new lights would ensure residents had a place to enjoy, even after the sun sets.

"Since work has finished to transform Fitzroy Plaza, the space has come to life with new businesses moving in and the community taking full advantage of the wider pathways and alfresco seating," Mr Anderson said.

"This further work will build on what we already have with and ensure the area also comes alive at night. We need to build our local night-time economy and this new lighting will help to attract more people to our CBD at night."

The $379,615 in funding comes from 'Streets as Shared Spaces' program - one that was set up after data revealed 70 per cent of people were connecting with others in public, rather than the home, following the pandemic.

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