The Welsh Centre for Burns and Plastic Surgery will receive a £7.7m upgrade, Health Secretary Mark Drakeford has announced.
The funding will enhance facilities at the Morriston Hospital-based centre, serving 10m people from Aberystwyth to Oxford.
Every year, the centre offers specialised treatment to more than 1,000 individuals, including children and those affected by extreme burns.
The funds will facilitate the creation of three burns cubicles and two general intensive care cubicles in Morriston's major ICU and the transformation of a current theatre to treat more burns patients.
Mr Drakeford said: "For the last 30 years, the Welsh Centre for Burns and Plastic Surgery has built a reputation for being one of Europe's largest and busiest burns services, providing excellent care to thousands of people.
"This funding will help to ensure the centre can continue to deliver the best outcomes for patients and staff alike, with high-quality facilities to meet patient needs, and to attract and retain talented, professional staff – helping to save more lives, quickly and safely."
The centre treats annually more than 6,500 people who need plastic surgery, often resulting from trauma, infection, and cancer.
Dean Boyce, consultant plastic surgeon at Morriston Hospital, said: "This investment means that the sickest of our burns patients will continue to get the best care possible.
"Swansea has always been one of the outstanding burns centres in the UK, and this development ensures that this excellence will continue."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here