Thousands of people are expected descend on Munro Street for the annual 'Christmas in Babinda' celebration on Friday 8 December.
Through the Community Partnership Grant, Council will put $3,500 towards the event which transforms the town into a Christmas festival with late-night trading for businesses.
Christmas in Babinda is the town's primary festive celebration, where members of the community and visitors come together to showcase the creative talents and unique character of the Babinda community.
About 3,000 people are expected to attend the festival which features a wide range of local entertainment, market stalls, food, arts and culture.
Since 2016, Council has provided more than $23,000 to the Babinda District Community Association for the Christmas event.