Driverless buses will take passengers between Edinburgh and Fife as part of a new trial.
The autonomous vehicles will have a driver on board for safety reasons, but will control themselves.
Scotland has been chosen to host the trial, with five autonomous single-deck vehicles completing the journey over the Forth Road Bridge.
The buses - operated by Stagecoach East Scotland - will carry 42 passengers on the 14-mile journey between Ferrytoll Park and Ride in Fife and the Edinburgh Park train and tram interchange.
Work on the project is expected to get under way during the second quarter of 2019, with buses on the road by 2021.
Funding of £4.35m has been awarded by the UK Government through Innovate UK with additional investment from operator Stagecoach, Transport Scotland, vehicle manufacturer ADL, technology company Fusion Processing Ltd, and mobility services specialist ESP Group.
In a statement, the project's partners said: "We're delighted to have been awarded this funding and we are excited to further test the potential for autonomous technology in the future within public transport using full size single deck buses, which so far has not been achieved anywhere else in the world.
"Drivers will still be required on all vehicles at all time while in service for passenger safety and to comply with UK legislation."
'This is a very exciting development and underlines the potential Scotland has when it comes to connected and autonomous vehicles'
Michael Matheson
Transport Secretary Michael Matheson said: "This is a very exciting development and underlines the potential Scotland has when it comes to connected and autonomous vehicles.
"The Forth has been at the centre of engineering innovation over three centuries and it is fitting that it will be central to this next innovation in transport and our Programme for Government commitments to intelligent mobility.
"The deployment of these vehicles in Scotland will bring transformative change to the way we travel and work, as well as having a positive impact on the economy, the environment and safety.
"This collaborative trial, using one of the country's most iconic transport corridors, shows Scotland is very much open for business in this innovative sector.
"I very much welcome the strong Scottish contingent in the bid team and I look forward to following this project with great interest."
Announcing the funding, UK Government Business Secretary Greg Clark said: "Autonomous vehicles and their technology will not only revolutionise how we travel, it will open up and improve transport services for those who struggle to access both private and public transport."
