Mossburn Distillers want to build the plant near the former Jedforest Hotel at Camptown.
Developers claim it could create 50 full-time jobs and produce millions of bottles a year. The proposed facilities include a 200-seat restaurant.
A planning application has been submitted to Scottish Borders Council with a decision expected in the autumn.
The company is also behind the Torabhaig distillery on the Isle of Skye.
The project is one of a number of schemes in the pipeline for the Borders which has no whisky distilleries at present.
The Three Stills Company has lodged plans for a site on Commercial Road in Hawick.
Last year a competition by R&B Distillers saw the public pick Peebles as the preferred site for a distillery.
Plans have been lodged for a £40m whisky distillery development near Jedburgh in the Scottish Borders.