The Ministry of Defence says military homes in Leuchars will still be upgraded, despite the company responsible for the work going into liquidation.
Construction firm Carillion collapsed last week, leaving many in North East Fife worried work on housing for service men and women would not go ahead.
But Stephen Gethins, the MP for the area, says the MOD has written to him, confirming the work can continue.
He said: "That's given me some reassurances, but this is something I am going to continue to keep an eye on as we go forward.
"Housing for our service personnel and their families is a really important responsibility that the MOD have and we need to make sure that they are getting the services that they deserve.
"Sometimes the housing that our service personnel have is not up to the standard that we might expect.
"And maybe there's an opportunity going forward to take another look at this and to make sure that the service that the families of military personnel have is the one that they deserve.
"Leuchars needs to be family friendly, it needs to be service personnel friendly.
"And that means making an investment in the housing to make sure that Leuchars and North East Fife continues to be a desirable place for military personnel to come and live and to make their home."