Gwynedd council-backed Memories Through Music is run by the William Mathias centre in Caernarfon and is designed to stop older people feeling isolated.
The weekly sessions give participants the chance to sing and play music together.
A trial has started at Awel y Coleg residential home in Bala and a similar scheme will take place in Gellilydan.
Children from Ysgol Bro Tryweryn in the nearby village of Frongoch will join the project early next year and work with the elderly in an attempt to "try and enrich the lives of both generations".
Project manager Meinir Llwyd Roberts, of the William Mathias music centre, said: "We felt that working within these two communities would give different opportunities to deal with and to try to tackle loneliness.
"Individuals can be lonely in a busy town, especially if they have moved there later in life, as well as individuals who live in quiet, isolated areas.
"We believe that this project gives the opportunity for us to experiment with a scheme that will bring the oldest and youngest generation of our communities together through the arts by giving the older generation a voice within their community."
Awel y Coleg resident Sylwen Davies, who attends the singing sessions, said: "You wouldn't know how much it enriches our lives. It's really, really wonderful."
Fellow resident Lily Williamson said: "It makes us feel more active - in fact, more normal."
Heledd Owen, head of Ysgol Bro Tryweryn, said: "It's going to be a great opportunity for the children to get out into the community and to meet new people."
A pilot scheme to try and tackle loneliness through music has been launched in rural areas of Gwynedd.