The town council agreed to buy drop icicle lights to replace its outdated lights which are no longer suitable for use.
Traders would also be encouraged to carry on with the Christmas tree lights which the town council and the Stroud Chamber of Commerce launched last year.
The town council will again provide free Christmas trees and holders to businesses.
“We appreciate that the lights add to the atmosphere of the town and we are committed to supporting our local shops,” said town mayor Amanda Moriarty.
“Our old lights were unsuitable for further use and we have now found replacements which are cost effective and will enhance the town.
“We were really pleased by how traders supported our tree scheme and we are keen to build up that partnership to ensure the town looks truly festive for 2015.”
The town council will use Nicholas Weaver of Sparkles, a local installer, to put up the lights.
The lights cost £4,500 and will be funded by last year’s saving when the council did not put up lights as the existing ones were not fit for further use.
It will cost approximately £4,500 a year to maintain, test, install and store the lights.
They will take less space to store and are easier to install and provide more lights than the outdated ones.