Newcastle council has started its $2 million overhaul of Kotara's Joslin Street.
The public amenity and pedestrian safety upgrades began on Thursday.
The project is part of the council's dedicated works program to improve local centres across the city.
Similar works have been completed in Carrington and Beresfield in recent years, and partially in Wallsend.
Lord mayor Nuatali Nelmes said the Kotara upgrade followed community consultation and would make for a more accessible centre.
"A key element of this upgrade is expanding the public open space on the corner of Joslin Street and Rae Crescent by removing the slip road and beautifying the area with landscaping and an interactive artwork," she said.
"Stacked sandstone blocks, a picnic table and bench seating, as well as a bubbler with a dog drinking bowl will further add to the amenity of this currently underutilised and inaccessible space.
"The works we're undertaking now will make Joslin Street a more attractive and useable community space for Kotara's current residents while catering for the growing number of young families in the area."
A pedestrian refuge and speed humps will be installed on Joslin Street to slow vehicles and better connect the shops with the open space. Lighting will also be upgraded.
The project is expected to be completed within a year.
Merewether's Llewellyn Street will soon undergo a similar upgrade.
