Estonia's capital, Tallinn, will be home to its first new synagogue since World War II.
The synagogue will be based next to the Estonian Jewish Community School and center, seating some 200 worshipers in an ultra-modern construction. The project is reported to cost some $2m.
"I believe it will be one of the nicest synagogues in Europe," Rabbi Shmuel Kot told The Associated Press.
The synagogue will also offer a kosher restaurant, a Jewish Museum for Estonia along with regular Jewish services.
Estonia had been home to some 4,300 Jews before World War II but after the Soviet occupation in 1940, hundreds of Jews were deported.
The Nazis later deported thousands of Jews to Estonia, where they were killed.
The Nazis established some 22 concentration and labor camps in Estonia, the largest being Vaivara, where as many as 20,000 Jewish prisoners passed through the gates of the camp.
There are currently around 3,000 Jews living in Estonia.