The announcement was made by Health and Ambulance Services Minister Yvette D’Ath.
According to the Minister, the redevelopment project worth $58.55m (A$86.2m) will increase the number of hospital beds from existing 137 to 255.
The hospital redevelopment is set to be completed in 2023.
The Minister said: “This increased bed capacity and the other improvements being delivered will help tackle the increasing demand for health services in this growing community.
“The redevelopment has already delivered a new purpose-built space for renal dialysis, more mental health beds and a new medical imaging department.”
Once complete, the hospital will also have increased capacity of emergency care, and more number of wards for surgical and medical patients.
A same day rehabilitation unit, renovated cancer care services with same day medical infusions and chemotherapy and central sterilising unit will also be available.
A courtyard and drop off zone near emergency department and a new kitchen will be additional facilities.
D’Ath further added: “Nambour General Hospital has been part of the local community since the 1920s, and with this redevelopment it will continue to care for locals for decades to come.”
Member for Nicklin Rob Skelton said: “The redevelopment means additional general beds, improvements to emergency care and access to additional mental health beds.
“It will also deliver increased capacity in medical and surgical services and an increased volume of low acuity surgery.
“The hospital continues to operate throughout the redevelopment and it’s great to see patients already benefiting from the new renal and mental health units.”