The Kincraig Hotel will become a must-visit destination for families when a multi-million-dollar revamp is finished.
The historic pub will become a family-friendly, modern and upmarket hotel with four-star accommodation.
After a tumultuous few years, the pub was recently bought by Ed and Julie Peter, Brett Matthews, Martin Palmer and Scott Brumby who have already been responsible for the redevelopment of several other hotels including the Uraidla Hotel.
Managing the Kincraig and all its renovations are managers Alli and Josh Busuttil who hope that the pub will become a destination for visitors and locals alike.
"We want it to become its own destination - Naracoorte is a service town, people are coming here to do their errands, but we want them to come here in their spare time to enjoy themselves,' Mrs Busuttil said.
"We need to do something different - we are not looking to compete with the other pubs. We are looking to bring in a different clientele.
"We want to do something different so the town thrives."
We want to do something different so the town thrives.Alli Busuttil
Work has already begun on a new cafe, which will serve a range of freshly made food and drinks, as well as offer beautiful views of the town.
The former nightclub area will become a "mums and bub" corner, which will cater to families with small children, and give parents a place in which to relax.
The cafe will feature a wine-tasting area with local Wrattonbully wines.
The works include a playground, a walk-in cellar where patrons can select their wine and an open-pass kitchen.
The pokies have been removed, with the gaming room set to return to its former glory as part of the front bar, which will double as a function venue.
The accommodation will be upgraded into queen en suite rooms with a 4 and 4.5 star rating.
The work is expected to take up to 30 months and will be completed in stages with the cafe due to be finished in October.
Mrs Busuttil said that once work is complete, the hotel expects to employ more than 80 people, with the renovations being done by a local building firm.