The Chesapeake Bay Maritime Museum (CBMM) will begin restoring the 1912 tug Delaware in the northern winter.
The two-year restoration will begin with lofting and start with Delaware's keel, stern and horn timber in January.
CBMM Shipwright James DelAguila said it was a full stern-to-stern project, with work to take place in full view of the public.
Work on deck structures will follow.
Built in Bethel by William H Smith, Delaware hauled scows on Broad Creek, towed ram schooners to and from Laurel, and occasionally carried people to Sandy Hill for day trips on the Nanticoke River.