Barnfield Investment Properties has submitted a planning application to build 59 houses and nine work units at Lob Lane Mill in Brierfield.
The derelict property on the Leeds-Liverpool Canal was acquired by Pendle Council earlier this year.
The development will be the second housing project for Pearl2, the joint venture between Pendle Council and Barnfield.
The main mill warehouse and engine house will be retained and refurbished to create 12 four-bedroom town houses. Nine of the properties will have the option for workspace on the ground floor.
Other buildings on the site, including the old weaving shed, boiler house and chimney, will be demolished to make way for a mix of 35 two and three storey houses and 12 apartments. Special permission will be needed for the demolitions because the mill is in a Conservation Area.
Julie Whittaker, housing regeneration manager for Pendle Council, said: "It's hoped – subject to planning approval and funding being available – that work could start on site in the autumn. This will be a catalyst for regenerating the Canal Corridor."