The National Lottery support for Aberystwyth University's Old College was announced on Wednesday.
It comes as part of a £22m plan to turn the Grade I-listed building into a centre for heritage, learning and enterprise.
It is hoped the work will be completed in time for the university's 150th anniversary in 2022.
A performance and gallery space will be created for artists, exhibitions and musicians and there will be a centre for entrepreneurs and new businesses, a cafe and community rooms.
The college will also house a university museum, allowing some of the 20,000 items normally in storage to be shown.
A new science centre will showcase interactive displays alongside a planetarium and 4D facility, highlighting the university's links with the European Space Agency.
The college was bought in 1867 by the University of Wales for just £10,000, using money donated by the community.
It first opened its doors to students in 1872 - before focus shifted in the 1960s when the university moved to a new campus.
John Glen MP, announcing the funding, said it was "recognised as one of the UK's most significant pieces of Gothic revival architecture".
The university is still looking at ways to raise additional funds, including a major appeal.
Ceredigion MP Ben Lake said: "This is great news for Ceredigion and will reveal the hidden history of an iconic landmark as well as paving the way for its future.
"The Old College will once again be recognised as a beacon of culture and creativity, and a major catalyst for economic and social regeneration."

Lewis-Francis took up the sport four months ago with the aim of competing at the Pyeongchang 2018 Winter Olympics.
He won 4x100m relay gold at the 2004 Summer Games.
GB performance director Gary Anderson said it was a "tough call" to leave the 33-year-old out.
Instead, Britain have gone for a mixture of youth and experience in their squad.
Lamin Deen, fifth in the World Championships in Winterberg last time out, pilots GB1 in the four-man alongside John Baines, Joel Fearon and Andy Matthews.
Double Olympian John Jackson pilots GB2 with Bruce Tasker, Ben Simons and new recruit Tremayne Gilling.
Winter Youth Olympics silver medallist Mica McNeil leads the British challenge in the women's competition alongside Natalie DeRatt.
The World Championships take place on 12-21 February.
World Championship squad
GB1 4-man: Lamin Deen, John Baines, Joel Fearon, Andy Matthews
GB2 4-man: John Jackson, Bruce Tasker, Ben Simons, Tremayne Gilling
GB1 2-man: Bruce Tasker and Tremayne Gilling
GB2 2-man: Brad Hall and Ben Simons or Ben Simons and John Baines
Women's: Mica McNeil and Natalie DeRatt

The Hammers were last week accused of sex discrimination by Stephen Hunt, chairman of the ladies' club.
West Ham said they will now work in unison with the ladies' team to ensure key improvements are made.
Vice-chairman Karren Brady said the Premier League club are "passionately committed to equality".
She added women's football was a "high priority on our agenda".
Hunt had told BBC Sport West Ham should "start to act like a 21st century club" and claimed they had stopped his team from finding sponsors, adding the ladies were short on funds because they had to buy their own kit.
In response, West Ham claimed Hunt had "refused to align" with their principles.
The ladies' team, who this season celebrate their 25th anniversary, play in the FA Women's Premier League Southern Division.
Brady added: "The addition of the ladies into the West Ham family is the solution my board and I have long sought.
"Not only does it secure the long-term future of the ladies' side, but also guarantees current and future supporters, players and staff of the ladies' team will form an integral part of the club's bright future as we move forward."
As part of the agreement, the West Ham Ladies' Academy will also be managed by the Premier League club.
More than £10m has been secured to restore an iconic university college in Ceredigion.
[NEXT_CONCEPT]
Olympic sprinting gold medallist Mark Lewis-Francis has been named on standby for Great Britain's provisional bobsleigh squad for next month's World Championships in Austria.
[NEXT_CONCEPT]
West Ham United have taken over the running of the ladies' club, saying they are "delighted" to bring it into "the West Ham family".