A section of the A158 and B1202 crossroads at Wragby will be rebuilt and given a new surface over a 12-week period from April 28.
Lincolnshire Country Council said the road has “reached the end of its working life” after a spate of icy winters and is in need of repair.
Traffic light signals will also be replaced at the crossroads and the existing pedestrian crossing is to be replaced with a more modern system, improving the junction efficiency for pedestrians and motorists.
Three new pedestrian crossings will be installed, and the footpath that runs alongside the Marketplace and A158 will be widened, making it more accessible.
Temporary traffic lights will be in place for the majority of the works.
Although the project is advertised to be completed within 12 weeks, contractors will only be on site during nine of those weeks.
Work will be suspended during public holidays and the road fully reopened to prevent inconvenience to holiday makers.
This road surface will be laid at night between 7pm and 7am. During this time the road will be closed throughout the night and local diversions will be put in place.
The road will be open as usual during the day.
David Chetwynd, Principal Engineer at Lincolnshire County Council, said:
“This section of the A158 is around 20 years old and has deteriorated quite considerably in recent years.
“We need to fully reconstruct the road and then lay a new surface, but once this has been done I don’t expect us to have to revisit the site for another 20 years.
“We are also taking the opportunity to make a few other improvements, including the installation of a new, more intelligent, traffic light system that will improve traffic flow and reduce congestion whilst helping pedestrians to cross the road more safely.”