Funding from the Fermanagh Flooding Task Force provided a short-term solution for the flooding which occurred in 2009, 2010 and 2015.
Infrastructure Minister Chris Hazzard said the investment will help alleviate ongoing flood issues associated with the road.
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He said: "TransportNI is undertaking this work to prevent having to close this important rural road should we see another flooding event like those that occurred in previous years.
"The improvements will deliver benefits for the local community and visitors to the Fermanagh area for many years to come."
Diversions will be put in place during the work.
Sinn Féin MLA Seán Lynch said: "These improvements will deliver benefits for the local community and visitors to the Fermanagh area for many years to come.
"Work on a temporary road, adjacent to the existing road, to facilitate light traffic will begin on Monday 12 December and will be completed before Christmas 2016.
"The main work will get underway in the New Year and is expected to be completed by March 2017."
(CD/LM)
