Dorothy House is one of 19 hospices in the South West to benefit from a cash boost.
The government has earmarked £60 million to improve care environments across the country, with Dorothy House at Winsley getting £462,497.
The £6 million being spent in the south west will be used to create new spaces for patients, their families and carers, and also support work with people in their own homes.
Deputy Prime Minister Nick Clegg said: "Hospices help patients and their families at what can be the most difficult part of their life.
"This extra funding will help bring hospices up to date, so staff and volunteers can work in modern environments, helping them continue to provide wonderful support with compassion and kindness.
"And patients will see a huge difference in their surroundings that play a considerable part in helping them psychologically and physically."
Set up in partnership with the charity Help the Hospices, the funding was made available to projects delivering improvements that directly benefit patients, have a impact on the physical environment and provide value for money.