First Minister Nicola Sturgeon announced the cash as she met farmers and butchers on a visit to the Turriff Show in Aberdeenshire.
The funding will support Quality Meat Scotland's 2018 Scotch lamb promotional campaign.
The meat product is one of 15 Scottish protected geographical indicators under EU law.
Ms Sturgeon said: "The food and drink sector plays an important part in Scotland's economy, so it is important we promote our premium produce.
"The strength of our farming industry would not be possible without the dedication and commitment of the farmers who work tirelessly to produce high-quality meat.
"That hard work and premium product is recognised by the protection given by the EU to the Scotch lamb brand and we will be working hard to continue that protection in the future.
"I'm pleased we could support this year's campaign which will help encourage consumers to buy Scotch lamb as part of their regular shopping."
Jim McLaren, chairman of Quality Meat Scotland, said: "Today's announcement by the First Minister is fantastic news for the Scottish sheep industry and it's a great boost for our producers."