Work to construct a roundabout at the notoriously dangerous intersection near the Farmers Arms Hotel in Daylesford is underway, but traffic congestion has caused driver frustration.
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Traffic delays at the site have sparked complaints of poor traffic signal operation.
Traffic flow is currently restricted to one lane through the intersection.
VicRoads said contractors will lengthen the green light signal and improve synchronisation of traffic management to ease congestion.
“Thank you to everyone who got in touch to let us know their experiences as we build the new roundabout,” a VicRoads Facebook post said.
“We've worked with our contractors to change the timing of the traffic lights on site to let more traffic through.
“You'll see more green lights and even when it is red, it will be red for shorter periods. We hope this helps you get where you need to be, safer and sooner.”
Construction of the $1.3 million upgrade at the intersection of Midland Highway, Daylesford–Trentham Road and East Street is expected to be completed mid to late September, dependent on weather.
Around 2600 vehicles pass through the intersection each day.