An application has been submitted to Scottish Borders Council for the redevelopment of 47 High Street.
The proposed bakery would produce a selection of meat, vegetarian and vegan pies available for takeaway.
The premises has stood empty for almost two decades except for a short period in 2020/21 when Nina's Tea 4 You outlet occupied the site.
A planning document presented to the council by the applicant, Gareth Easton, says the bakery would be an asset to the High Street.
It adds: "The site is presently an empty retail shop. The shop forms part of a two-storey terraced building with other retail units at street level and residential flats above.
"The site was occupied for a few months in 2020. Otherwise, it has been unoccupied for more than 18 years. The property was on the open market for rent or to buy from March 2021 until November 2021. Unfortunately, no tenant or buyer transpired. The site is one of four presently unoccupied retail properties on the High Street.
"The proposed development would make a positive contribution to Innerleithen High Street and the town. In providing a quality takeaway the business would generate additional footfall in the main retail area.
"The proposed development offers a service not currently available in Innerleithen and would encourage daytime visitors to the town."
If agreed the outlet would employ three part-time staff.