It retains numerous historic features, including carvings, fireplaces and original windows, and the interior has been described as exceptionally well preserved.
South Lakeland District Council approached Kendal College about incorporating the building into its campus and extensive refurbishment took place between March and September 2011.
Funding for the £200,000 project came from English Heritage, the district council, the college and two additional organisations, the Savoy Trust and Lakeland Vintners.
[1] The Castle Dairy reopened in October 2011, with the ceremony performed by historian David Starkey, who grew up in the town.
The Castle Dairy now operates as an art gallery and a college-run restaurant, with food prepared by Kendal College hospitality students.