The vacant site on the corner of High Street and Judy Row in Monk Bretton once housed the Butchers Arms pub, which has since been demolished.
A planning application has been lodged with Barnsley Council for a new two-storey building with three three retail units on the ground floor and six residential flats above.
A new car park is proposed with access from High Street.
A design and access statement, submitted by the applicant, states: “The proposed retail units are designed for smaller, local shops.
“The shops will provide much needed support for the elderly residents close by, who do not have access to transport or have to catch buses just to get their weekly food shopping.
“The proposals re-develop a previously developed site, providing economic and social benefits for the area.”
Residents can comment on the plans until June 28.