Andrews of Stratford is expanding to add 24 nursing care beds to the community care facility.
Renovations have already begun.
Company officials say over the past decade the need for community care and nursing care beds on Prince Edward Island has steadily increased.
Will serve more advanced care needs
The addition of nursing care will allow residents who are currently in community care beds to remain in the facility as their needs become more advanced.
Company vice-president Jeff Murphy said that while the company hasn't been granted a nursing licence yet, they're cautiously optimistic that as new beds are added into the system by the provincial government, Andrews will be well positioned to be awarded one.
Murphy said the company is also planning to bring independent living apartments to the property.
The nursing beds will be located in a separate wing and will be ready for residents by mid-December,