Council last week endorsed the plan, which aims to guide future development on the road, with a range of agencies expected to complete projects to improve the street in the coming years.
The report to council says the first stage of the masterplan will be the conversion of the road to two-way traffic between William and Mill streets.
A shared path will also be built to extend the existing bike network to William Street.
The plan also accounts for traffic lights to control the Point Lewis Roundabout, bus priority lanes and cycle lanes.
Parking on the road eastbound is retained, as are trees lining both sides and the middle of the road.
Councillor James Limnios said the plan would help solve the difficult proposition of how to retain the streetscape while improving the road.
‘The City officers have created a solution that everybody else found difficult to do,’ he said.
‘And that is in improving the street but also retaining the trees, streetscape and green oasis that we have on Mounts Bay Road.’