The Lib Dems are no longer a party of protest but are instead a party of government, leader Nick Clegg is set to tell their spring conference.
Victory in Eastleigh debunks "the myth" that being in coalition has undermined the party's identity and ability to fight the Tories, Mr Clegg will say.
And he will hit out at critics who wrote "political obituaries".
On Saturday, former leader Lord Ashdown said being in government must "become a habit" and not be a "blip".
In his keynote speech in Brighton, Mr Clegg will acknowledge that some in the party had "quiet fears" that teaming up with the Tories was too big a risk.
But he says that risk can pay off in May local elections and the general election in 2015.
"The longer you stand side-by-side with your opponents, the easier your differences are to see," he is expected to say.
"We don't lose our identity by governing with the Conservatives - the comparison helps the British people understand who we are."
'Fierce campaign'BBC political correspondent Vicki Young said the Eastleigh by-election victory had given party activists a much-needed boost after a difficult few weeks.
End Quote Paddy AshdownAt the next election, we can and we must ensure that we have the votes and seats to continue the job we have, with such courage, started together"
They had included former cabinet minister Chris Huhne's conviction for perverting the course of justice and accusations of misconduct against the party's ex-chief executive Lord Rennard, which the peer rejects.
The Lib Dems hope the speech will signal a significant repositioning for the party, our correspondent added.
"The odds were stacked against us," Mr Clegg is expected to say of the Eastleigh victory.
"A fierce campaign, under a national spotlight, dogged by difficult headlines from day one.
"Extraordinary circumstances. Yet we still won."
He said the party had beaten the Tories and "squeezed Labour" because "for the first time in a generation we could campaign on our record of local delivery and our record of national delivery too".
He added: "We didn't win in Eastleigh in spite of being in power. We won in Eastleigh because we're in power - locally and nationally."
'Continue job'Speaking at a question-and-answer session on Saturday, Mr Clegg said he was "as restless as anybody else to make sure that we see growth materialise faster" - but equally he did not think "we should fool ourselves or anybody else to suggest this is any way easy".
"I just don't believe there is one single button to be pushed, policy to be signed off, magic wand to be waved, which creates growth miraculously," he said.
"I'm afraid we're carrying the dead weight of so many mistakes in the past."
Lord Ashdown said the party - which has been in a coalition government with the Conservatives since 2010 - now had a taste of power and wanted more.
"You can't change a country overnight. You can't deliver on the liberal promise in just one government. It takes time," he said.
"And that's why, at the next election, we can and we must ensure that we have the votes and seats to continue the job we have, with such courage, started together."
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