The Covenanters' Memorial which connects Victoria Street with the Grassmarket shows the 100 Covenanters who were executed between 1661 and 1688 for continuing to preach despite being "outed" from their parishes due to their opposition to Stuart Kings in Presbyterian Church of Scotland affairs.
As part of the refurbishment there will be a placement of historic panels, engraved poems and cobbles to mark where gallows used to be.
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An events zone will be created in addition to an extension of a pavement café area. The square's car parking spaces will be relocated.
Phil Wheeler, the City of Edinburgh councillor in charge of public realm projects in the capital, said: "The rejuvenation of the Grassmarket will undoubtedly mean that more people visit one of the most historic areas of Edinburgh and all it has to offer.
"Marking the line of the Flodden Wall, interpreting the former hangman's gallows in stone and improving the visibility of the Covenanter's Memorial will preserve the rich and varied history of the area in a way that will be of interest to locals and visitors alike."
(GK/JM)
