Castlemaine will showcase 50 exhibits, ranging in style and technique, as part of the 4th Biennial Textiles Exhibition.
The event is being held at Buda Historic Home and Garden, and will be open from 10am to 4pm daily.
The home's curator Lauretta Zilles said the exhibition had grown since it began in 2008.
Judges of the exhibit have called this year’s work “innovative” and said the “general standard of the exhibits was higher than with previous awards.”
The home was originally owned by the Leviny family in 1863.
It was turned into an arts museum because of the foresight of Hilda Leviny, who sold it to the Castlemaine Art Gallery in 1970.
“The spirit of the Leviny sisters is kept alive with the cultivation and promotion of contemporary textiles through this award exhibition,” Ms Zilles said.
The event runs from June 1 to June 15.