Golden Oaks Nursing Home's new 15-bed wing was officially opened on Monday.
The $4.9 million redevelopment, funded through the State Government Regional Health Infrastructure Fund, provides single rooms and ensuites for all residents, two sunrooms and a large communal area.
The new wing was opened by local MPs Jacinta Allan and Maree Edwards.
Member for Bendigo East Jacinta Allan said: "It's been a couple of years in the making but there has been a transformation at this aged care facility."
"Bendigo Health has listened to residents about what they wanted and built the best facilities possible."
Bendigo West MP Maree Edwards said the staged upgrades had created a world class aged care facility at Golden Oaks.
The new wing follows a $3.5 million project to build a link between the Golden Oaks Nursing Home and Carshalton House, which was completed last year.
Bendigo Health chairman Bob Cameron said the Golden Oaks complex had undergone significant change over the past few years.
"It is a far more homely environment now," he said.
The project was delivered by Bendigo Health Facilities Management in conjunction with Baade Harbour Architects and Melbcon Builders.