Scottish Enterprise is providing money for the work, and it hailed the transformation of the area as a "nationally important project" which would "pave the way" for the museum.
Work constructing the £45 million V&A Museum of Design Dundee is scheduled to begin this summer, and it is expected the building - designed by architect Kengo Kuma - will be completed by late 2016.
The Scottish Government has already committed £15 million towards the cost of the project, with the £8.3 million from Scottish Enterprise separate to this.
Finance Secretary John Swinney announced details of the latest funding, saying: "The financial support from the Scottish Government via Scottish Enterprise will regenerate the Dundee central waterfront and will offer views over the river, the city and the museum.
"This in turn will create local jobs and contribute significantly to the regeneration of the city itself."
He added: "The V&A project is a fantastic, once in a generation opportunity for the city to re-invent itself and enjoy greater economic success. I am delighted that the Scottish Government is part of this ground-breaking development."
Scottish Enterprise director Mick McHugh said: "This is a nationally important project which will pave the way for the V&A Dundee, which will be transformational for the local and national economies, both in terms of visitor numbers and jobs - with more than 860 net construction, tourism and waterfront district jobs anticipated in the next decade.
"After the Guggenheim Museum in Bilbao opened there was a 25% increase in employment in its tourism and hospitality sectors, with knock-on job increases in other sectors, and we are already seeing very encouraging investment in the hotel sector in Dundee."
Dundee City Council leader Ken Guild said: "I am pleased that Dundee has secured this funding from Scottish Enterprise. This promenade will add an extra dimension to the V&A Dundee and make it even more attractive for local people, visitors and investors."