Historians are to write a book and create an exhibition detailing the rich history of their village after receiving a �46,500 grant.
Mountsorrel Heritage Group is to look back over the past 135 years using cash from the Heritage Lottery Fund.
Members will team up with arts organisation Glassball Art Projects to interview residents and collect film footage and photos.
Much of the research will focus on the role of the 19th century Mountsorrel Granite Company, which set up a quarry in 1876.
Mountsorrel Parish Council vice-chairman Paul Harris said: "Our village history is closely linked to the granite company and the quarry. Hopefully, we will learn from this project."
Glassball was invited to help because of concerns that the village's industrial past would be lost to future generations following the building of a housing estate on another key site, the former Rolls-Royce factory.
Cora Glasser, from Glassball, said: "We can explore and document – with the assistance of community members – their distinctiveness for future generations to cherish and learn from."
Glassball will hold workshops with volunteers, teenagers from Sorrel Youth Cafe, Scouts, Guides and the primary school.
Emma Sayer, head of the lottery fund in the East Midlands, said: "Through collecting and preserving stories, this project will create a lasting record of people's experience of living and working in Mountsorrel.
"Projects such as this provide opportunities for the generations to mix and learn from one another."
Loughborough MP Nicky Morgan said: "This is a fascinating project that will hugely benefit future generations.
"I believe that in order to plan for our futures we need to understand our past and that is why this project is important."
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