The proposals will see a total of 18 flats constructed on St Catherine Street through the conversion of the County Buildings. There will also be a new-build extension under the plans.
Work is expected to commence on site in July.
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The development will include eight one-bedroom flats, which will all be conversions, and 10 two-bedroom flats, two of which will be conversions and the remaining eight being new builds.
Councillor David Ross, Depute Leader, said: "Now that this development has been given the go ahead it allows Fife Council to re-use and preserve a key listed building within a conservation area.
"This will undoubtedly contribute towards the regeneration of Cupar town centre as well as providing more much needed housing for the area. With approval now in place we could be looking at the first tenants moving into these homes in June 2015."
(JP/CD)
