Almost 200 jobs are to be created in the Donegal Gaeltacht.
The posts will be created out of 2.9m euro of government funding awarded to development body Udaras na Gaeltachta to fund 55 projects in Gaeltacht areas across Ireland.
93 of the jobs will be based in existing companies in Derrybeg and Dungloe.
Donegal Fianna Fail senator Brian O'Domhnaill said the jobs would be a major boost to the local economy.
He also said it was further evidence of the government's commitment to protecting Ireland's heritage.