The Scottish government and city council provided additional funding for the King's Theatre's renovation, preventing it from closing.
The charity that manages the theater in Tollcross, Capital Theatres, was £8.9m short after being hit by rising costs due to inflation.
The Scottish government has pledged an additional £3.85 million to the project, and the council has now contributed an additional £3 million.
In order to support the 100-year-old theater, the charity previously raised £26 million.
Capital Theatres CEO Fiona Gibson expressed her company's extreme happiness. We are able to start the construction process exactly as planned thanks to it.
"We owe a debt of gratitude to the countless individuals who have helped us along this arduous journey; without you, we would not have made it this far. ".
Neil Gray, the minister of culture, stated: "Theatres like King's play a key role in maintaining Edinburgh's reputation as a hub of culture and creativity, which is well-known throughout the world.
The King's Theatre has received funding totaling £10.35 million from the Scottish government.
"This demonstrates the value we place on the necessity of its redevelopment and its potential in the future to support the arts, employment, and community involvement. ".
The King's Theatre, Festival Theatre, and The Studio each host more than 700 performances each year of drama, dance, musical theater, live music, comedy, and pantomime.