The former Abingdon Gaol looks set to be turned into apartments and restaurants after planners gave their approval to the redevelopment.
The jail was built in 1811 and was turned into a leisure centre in 1974 before closing in 2002.
Plans to convert it have been controversial with many local people who wanted more community space.
Planners at the Vale of White Horse District Council have voted unanimously in favour of the scheme.
The 19th Century jail in an Oxfordshire town was completed by Napoleonic prisoners of war.
It will house 61 new homes with underground parking and five to six shops and restaurants.
The flats, built by Cranbourne Homes, will have solar power and grey water recycling facilities.
The scheme also includes 24 affordable homes at two other sites in the town.
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