Hunter Street footpaths will be widened to allow for alfresco dining and more trees in a bid to restore the mall as a traditional high street.
The $1.9 million upgrade of Hunter Street bound by Perkins and Brown streets will also include road upgrades and better lighting.
City of Newcastle is completing the works to coincide with Iris Capital's billion dollar East End redevelopment of the mall.
"City of Newcastle is investing in the future of our East End cultural heritage precinct, with this next phase of public domain works aimed at creating opportunities for new development, retail, public spaces and providing notable links to the harbour," Newcastle lord mayor Nuatali Nelmes said.
"Our vision for the East End Village is to reinstate Hunter Street as a traditional high street and as an attractive destination for locals and visitors to enjoy, with enhanced outdoor dining and unique local retail opportunities.
"We will be improving pedestrian accessibility, enhancing lighting and providing important cycling links to improve the functionality of entering the precinct."
It follows a similar $5 million upgrade of Hunter Street between Perkins and Wolfe streets completed in May 2022, which will eventually be matched along the length of the mall to Newcomen Street.
Deputy lord mayor Declan Clausen said council had done "significant planning work" to preserve the heritage of the East End, including the protection of important view corridors.
"Together with Iris Capital and its contractors we are working to best coordinate the sequence of works in this next phase to reduce the impact on the community," he said.
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