Association president Dr Dorothy Page presented a cheque for $15,000 to the museum yesterday, to enable staff to film and digitise the portraits in the museum's Smith Gallery.
"This project appealed to us enormously. The early settlers' portraits are the heart and soul of the old part of the Otago Settlers Museum," Dr Page said.
"To make these portraits available online to the community is something we believe is a useful educational and historical tool, and something we are very proud of."
Museum director Linda Wigley was delighted.
"This dynamic interpretation of the Smith Gallery will be launched on our virtual museum website later this year.
"We are very grateful for the continuing support of the Otago Settlers Association which furthers our role in preserving our people's history."