T in the Park will go ahead at Strathallan in July after councillors granted the festival a one-year public entertainment licence.
The approval followed a five-hour Perth and Kinross Council meeting attended by organisers and objectors.
Last year's event was criticised over traffic issues and anti-social behaviour.
Organisers DF Concerts recently announced improvements to the campsite, arena, and traffic management.
The festival's director, Geoff Ellis, said "I'm delighted with the council's decision and that they have acknowledged the significant work that has been put into ensuring that this year's festival will be remembered for all of the right reasons - incredible line-up, the best entertainment and fun with your mates.
Melvin Benn, T in the Park's executive producer, said: "We're delighted to have received our licence for 2016 and we'll be happy to be judged on this year's event.
"We've robustly addressed the shortcomings from 2015, we have a brand new team in place with a huge amount of expertise and the council has recognised the sheer volume of work that has gone into this year's planning."