Transport authority Centro and Sandwell Council will provide a package of improvements along roads on the No 4 bus route.
Those travelling along the route, which connects Walsall with Blackheath, will benefit from more efficient into Blackheath, Oldbury, West Bromwich and Sandwell College.
Councillor Judith Rowley, Centro’s lead member for fair, accessible and sustainable transport, said: “Making changes to junctions and crossings might seem like small improvements but when taken along the route as a whole will have a major impact of the efficiency of people’s journeys.
“These upgrades will really help ease the flow of traffic along these already busy routes and improve journeys for bus passengers, motorists and pedestrians.”
There will be upgrades to nine junctions including bus priority measures which will speed up journeys for passengers.
Pedestrians in the area will also see improved crossing facilities with five pelican crossings being replaced with puffin crossings, which allow people to view both the display and oncoming traffic while waiting for the signal to change.
The money will come from Centro’s government funded Smart Network, Smarter Choices project which aims to cut carbon, boost the economy and connect residents to jobs.
The changes will see improvements made along parts of the busy Walsall Road, Oldbury Road, High Street and Churchbridge.
Further work to improve walking and cycling routes in the borough will also be completed over the next 12 months.
Cllr Maria Crompton, Sandwell’s cabinet member for highways and environment, said: “This is excellent news for Sandwell’s residents.
“By working with Centro we’re making life easier for people travelling to and from the borough and creating better links with our neighbours.”