Traffic lights were switched on last night at the intersection of Cary Street, Donnelly Avenue and James Street.
This marks a new milestone for the road's upgrades, which are expected to improve safety and congestion within peak traffic times.
Lake Macquarie MP Greg Piper says he is very pleased with the progress of the project.
"It's a major step forward and is going to make this stretch of Cary Street much safer than it was before," he says.
Additional upgrade work will continue, but the project is expected to be completed before the end of September.
