The Old Shildon Club on Main Street closed on Monday (July 14) for the revamp, which is expected to last for a month.
The pub was recently saved from closure by Newday Group, which owns and operates several pubs.
John Taylor, Newday Group Director, said: “We are really excited to refurbish the club for its members and wider community.”
“The people of Shildon have supported the club for a very long time and it was the right time to refurbish it for generations to come.”
The Old Shildon Boxing Club is located above the social club, and the owners plan on helping them with their facilities.
“We’re going to do some work with them and help improve their facilities.
“They’re doing an amazing job and it’s essential for getting kids off the street and giving them confidence.”
Owners confirmed the refurbishment will include 75-inch TVs, new pool tables and self-scoring dartboards.
It will also include a new beer garden, bar, and a stage for entertainment.