The story of Jane Haining's heroism, bravery and personal sacrifice will be celebrated at the new centre within Dunscore Church near Dumfries.
The centre, which is part-funded by a £106,400 grant from the Heritage Lottery Fund (HLF) and Historic Environment Scotland (HES), is expected to open later this year.
Miss Haining was matron at the Scottish Mission school in Budapest between 1932 and 1944 and became aware of the growing threat the Nazis posed to the Hungarian Jews.
Determined to ensure the school was a place where all children would feel safe, she repeatedly ignored orders from chruch officials to return to Scotland.
She was later arrested by two Gestapo officers in Budapest and later died at Auschwitz Birkenau, the notorious Nazi death camp.
Welcoming the development, Rev Ian Alexander, secretary of the Church of Scotland's World Mission Council said "This is an exciting development for Dunscore congregation.
"The heritage centre will include information on the life of Jane Haining, a woman who was simultaneously ordinary and extraordinary, and will highlight how her life in the church, the village and the community shaped her, and prepared her for her future work."
He described Miss Haining's story as heart-breaking and inspirational.
The exhibition will feature photographs, letters, documents and other items linked to the missionary including a copy of her handwritten last will and testament, which was found in Church of Scotland offices in Edinburgh last year.
