People with temporary injuries or illness which restrict mobility will be eligible for a blue disability parking badge from Saturday.
The expanded scheme will now offer 12-month badges for those recovering from or waiting for treatment.
Severe leg injuries, stroke or head injuries, spinal trauma and cancer affecting movement are among the eligible conditions.
Infrastructure secretary Ken Skates said it would improve accessibility.
Mr Skates said extending eligibility ensured those in need had access to a blue badge, while limiting the criteria to people who had an impairment lasting 12 months or more would ensure the scheme is reserved for those with the greatest mobility needs.