The Dovecot Studios have taken up residence in the former Infirmary Street Baths in Edinburgh's Old Town.
The building was placed on the At Risk Register after closing in 1995.
In a £5m refurbishment one of the pools was transformed into studio space while other rooms were converted into workshops.
Five years ago Alastair Salvesen and David Weir took over the company.
The oldest tapestry company in Edinburgh had been without a permanent home since 2001.
The studios website announced: "The newly renovated former Victorian Baths will provide a permanent home for Dovecot Studios and provides an exciting new workshop space in which to develop collaborations with international artists and designers."
A programme of work has begun at the centre to promote the link between art and craft; two new exhibitions are now open.
David Weir, company director, said: "This is definitely a working studio, not some kind of museum, and we hope the orders will increase with time."
(GK/JM)
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