A £4m therapy wing and 14 new and refurbished bedrooms have been officially unveiled at Rainbows Hospice, Loughborough.
The facilities were launched by the Duchess of Rutland.
They include a new hydrotherapy pool, a state-of-the-art multi-sensory room, young persons' lounge, cinema facilities and soft play.
Rainbows is currently the only hospice in the region for children and teenagers.
'Quality of life'
Managers have said the development meant it could offer continuous support to young people aged 18 and older for the first time.
Geoff Ellis, of Rainbows Hospice, said: "It'll make a massive difference to the quality of life that they have when they stay here - it's about quality of life, in the hospice."
Teresa Newie, whose daughter attends the hospice, added: "For children like ours who don't get to experience a lot of things on their own, to come to somewhere like this and have the freedom to do so is just great."
Rainbows was founded in 1994 by Gail and Harry Moore after the death of their daughter, Laura, who had leukaemia.
It officially opened in 1995.