Safety barriers and curve warning signs will be among the upgrades to Lake Road, from Bellbridge to 1.7 km south of Kurrajong Gap Road in Bethanga.
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The $179,000 project has been successful in the latest round of the federal government's Black Spot Program.
There will also be a $1.4 million upgrade to Bogong High Plains Road between Sun Valley Road and Wallace Hut Track.
In total the safety of 71 Victorian road black spots will be improved over the next 12 months.
Infrastructure Minister Deputy McCormack made the announcement this week.
"Funding has been allocated to road locations that have been identified as high priority, with 326 casualty crashes recorded at these sites over the past five years, including 15 fatal crashes," he said.
"The panel that reviews priorities for the program includes representatives from the Royal Automobile Club of Victoria, the Victorian Transport Association, Victoria Police, the Municipal Association of Victoria and VicRoads."
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