The money from Historic Environment Scotland will now fund the vast majority of work that is needed on the most damaged section of the sea front.
Every time a storm strikes, more of the shore is breaking off into the sea.
Isle of Luing Community Trust has appointed a contractor and work is expected to start in early June.
The work, which is just Phase One of a massive project to stop erosion and protect homes, will take about four weeks.
Signs will be going up to warn residents and visitors of moving machinery during the works, operating hours are expected to be between 9am and 6pm.
The repairs will be signed off by a civil engineer, residents were told at a recent public meeting.
Quotes will also be sought for repairs to the south part of the wall and more funding will need to be found.
Luing Community Council convenor Innes MacQueen has welcomed news of the HES grant.
He said: "It's taken nigh on three years to get to this stage. It's very much welcomed. It's a good start but there are further repairs needed."
Experts have been commissioned by Luing Community Trust to write reports on the state of the shoreline and what options could be open. The reports were helped by a 3D model of the shore, thanks to data captured from an aerial survey.
Previously two bids for financial support were rejected by SSE and the Crown Estates and villagers have been told Argyll and Bute Council under no circumstances would be responsible for the shore, leaving Cullipool in a situation where it has to help itself.
Villagers have also been warned that at the north end of the shore, the shoreline is now at the edge of a track and losing just another five metres could breach the quarry – if that happens it could have serious implications.
Last year a flood defence group was set up and tasked to find a solution, residents were also asked to pledge money for repairs.
The grant means a lot of those pledges can now go forward to support the second phase of repairs, but people will be asked for their consent first.
A potential crowdfunder appeal is also on the horizon.
‘The Isle of Luing Community Trust's application for grant assistance from the Historic Environment Support Fund, operated by Historic Environment Scotland focused on the community working together on a two-part plan to sustainably protect the whole conservation village from the severe weather events and flooding that has been seen in the last few years.
Trust director Colin Buchanan said: "The trust are delighted to say that a grant of £25,000 has been awarded which completes the funding needed to undertake Phase One of the repair of our sea defences. The grant is supplemented by generous offers of support from community members, Luing Community Council, The Community Trust and the Horticultural Society.
"We are very grateful to Historic Environment Scotland for their support as this enables us to undertake phase one in June and to turn our attention to raising funding for phase two and completion of the sea defence repairs."
Yes! I would like to be sent emails from West Coast Today
I understand that my personal information will not be shared with any third parties, and will only be used to provide me with useful targeted articles as indicated.
I'm also aware that I can un-subscribe at any point either from each email notification or on My Account screen.