Cakebread's Garden Centre, off Soroba Road, will have its last day of trading on July 29.
Business owners Elaine Tosh and Lynn Fisher say the venture has run its natural course and that it is time to go.
The pair took over the garden centre about 10 years ago from previous owners Alistair Cakebread and George Campbell.
The original garden centre took root opposite Tesco in the mid 1980s before opening its second, and current site, on land rented from Matheson's nearby.
Elaine and Lynn, who both worked at the garden centre before becoming its owners, wanted to thank people who have supported the small, independent business for so long.
"We have had many loyal customers over the years and want to thank everyone who has supported us. We will miss them lots but hope they keep supporting Oban's small, independent businesses," added Elaine.
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