The completion of the works at the intersection of Princes Highway East and Cardinia Road was officially announced on February 10.

There have been 10 crashes at the junction, which was previously an unsignalled T-intersection, in the five years to June 2011.

The upgrade includes the installation of traffic signals, street lighting, additional right-turn lanes on Princes Highway East, approach lanes on Cardinia Road, and pedestrian crossings.

The intersection is also the main entry to the Grandvue Estate housing development and is next to St Francis Xavier College's Officer campus.

Kathy Burgstahler, chairwoman of the Lakeside Residents Group, said the estate's residents had been excited to hear the intersection was being upgraded. "They've seen near-misses there many, many times."

She said the addition of a pedestrian crossing controlled by lights was also welcome.

"That will now be a safe way for us to cross the road and link with the other estates.

"We encompass all of Pakenham, and we see the crossing as a way to meet lots of new people."

Parliamentary Secretary for Transport Edward O'Donohue said many of the crashes at the intersection were cross-traffic crashes, which highlighted the need for traffic signals.

"In this popular growth area, traffic conditions have changed with significant population and traffic increases since the opening of the Pakenham bypass.

"The upgrade also included works to connect Grandvue Boulevard to the newly signalised intersection to provide access to Grandvue Estate and the college to the north."

Gembrook MP Brad Battin said the upgrade eliminated confusion at the intersection and would ensure the safety of road users on the highway.

"I am pleased the state government has delivered this essential road infrastructure now, before the area is further developed and traffic increases."

This project was jointly funded by VicRoads, the Department of Planning and Community Development, Cardinia Shire Council and Grandvue Estate developer RCL Group.