The environmentally sustainable harbour will improve local transport access as well as promoting business and tourism links.
The cost for Cé an Chalaidh Mhóir included works such as dredging, the construction of a pier and breakwater and parking facilities.
The development was opened by Minister for Community, Rural and Gaeltacht Affairs Éamon Ó Cuív and Minister for Energy and Natural Resources Éamon Ryan.
Construction firm SIAC completed the work under the direction of Galway County Council and RPS engineering consultants.
"The construction of this new harbour will help strengthen economic opportunities for the island's community," said Mr Ó Cuív.
"Given the remote location and high wave conditions, the project was logistically challenging."
The island has a population of 200 people, who are mainly involved in the agriculture, fishing and tourism industries.
The construction of a major new pier on Inis Mór is also due to be completed soon.
Inis Meáin off Co Clare has recently seen a new 14 million euro harbour completed. Thousands of giant X-shaped concrete blocks which were cast from moulds by islanders were used in the development on the Aran Island.
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