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The sale of alcohol will be banned to pubs and restaurants in Wales and will be forced to close at 6pm every night.
The measure announced by Prime Minister Mark Drakeford will take effect from 6:00 p.m. this Friday.
Movie theaters, bowling alleys, bingo halls and other indoor entertainment venues must also close as of the same date.
Drakeford cautioned that without further action, the number of people needing hospital treatment per COVID-19 in Wales it could rise to 2,200, and there could be up to 1,700 preventable deaths during the winter “unless we act.”
Indoor attractions, such as museums and galleries, will also need to close, although outdoor visitor attractions may remain open.
The prime minister said the number of infected people per 100,000 in the country had risen from 187 on Friday to nearly 210.
He warned that cases had continued to rise among those under 25 years of age.
“Even more worrying, the cases of coronavirus they are beginning to rise in the group of more than 60 years ”, added.
Drakeford said the nation would consider travel restrictions in and out of Wales again after the shutdown in England ends, with another announcement to be made later this week.
He told the Welsh Government press conference: “The actions we are taking are based on what the UK SAGE think tank tells us has worked better elsewhere.”
And, he added, the Government of Wales “will provide the most generous package of financial assistance anywhere in the UK” to those affected by the new restrictions.
Other national measures, such as domestic bubbles and how many people can gather in public indoors or outdoors, will remain the same.
The restrictions will be formally reviewed by December 17 and every three weeks thereafter.
Drakeford said he was “grateful” for what the hotel industry had done and acknowledged that the new restrictions would be “difficult” because they come at one of the busiest times of the year.
“To support businesses affected by these new restrictions in the New Year, we will provide the most generous package of financial assistance anywhere in the UK,” he said.
The package will include £ 180 million specifically for tourism, leisure and hospitality businesses, in addition to various support schemes available from the UK government.
It occurs as the number of coronavirus cases in Wales continues to rise.
Sixteen of the 22 local authorities in Wales saw increases in their seven-day mobile case rate last Thursday.