Westport and Kinsale have been crowned 2014 National Large Tourism Town and National Small Tourism Town respectively.
The popular Mayo town and Cork fishing village were chosen from a shortlist of ten top tourism towns.
Minister of State for Tourism Michael Ring congratulated the two towns on "a great achievement".
He said the awards were “worthy recognition for all that they do” to promote tourism in Ireland.
“These awards are all about honouring the towns that put tourism at the centre of what they do,” he said.
“This is particularly evident with our winners, with both towns clearly embracing tourism and seizing the opportunities arising.”
The Tourism Towns Award was designed by Fáilte Ireland to promote the Irish towns and villages that work hardest to "enhance their appeal to tourists visiting their local area".
As the overall winners, Westport and Kinsale received winning certificates along with a €5,000 grant towards further developing themselves as tourism destinations.
The judges of the competition said there was “something for everyone” in Westport, and that the coastal town “caters well for Ireland’s climate”.
They said Kinsale had a “cosmopolitan feel” that encourages visitors to get out and explore.
“There is a great cosmopolitan feeling in Kinsale coupled with beautiful scenery and narrow streets bursting with history,” they said.
“It would appear that Kinsale has something to offer all demographics and its visitors will leave with lasting impressions and memories.”
Aside from the two top winners, the other commended towns were: Ardmore, Co Waterford; Carrick on Shannon, Co Leitrim; Cobh, Co Cork; Glengarriff, Co Cork; Kilkenny town, Co Kilkenny; Killarney, Co Kerry; Lismore, Co Waterford; and Portmagee, Co Kerry.