Rosedale Road, Meadowvale will receive additional street lighting, a new turn lane and widened intersection as part of the Palaszczuk Government's Safer Roads Sooner program.
Transport and Main Roads Minister Mark Bailey said in coming weeks, crews would widen the Moorlands Road and Fig Tree Terrace intersections to provide a safer road for motorists travelling in the local area.
"Cost-effective solutions like this will help to vastly improve safety for residents living on Fig Tree Terrace and Moorlands Road, as well as motorists driving along Rosedale Road," Mr Bailey said.
"A dedicated left turn lane into Fig Tree Terrace will be installed, and widened shoulders will allow traffic to safely pass vehicles turning right into either Moorlands Road or Fig Tree Terrace.
"In addition to installing new street lighting and widening the intersection, the road's gradient will also be improved along a 170-metre section.
"It's great to be able to deliver this upgrade for Bundaberg region residents through the Palaszczuk Government's Safer Roads Sooner program.
"Safer Roads Sooner is one of our most successful road safety improvement programs and focuses on high benefit, cost effective engineering treatments to address known and potential crash locations."
Works are expected to be complete April, weather permitting.
Motorists are urged to drive to condition, observe all warning signs and be aware of changed conditions, such as reduced speed limits, queued traffic and temporary detours.