An Bord Pleanala has given the green light for more than 140 new homes in Knocknacarra.
The plans were refused by city planners earlier this year - due to potential conflict with the Galway Ring Road.
These plans led by Cairn Homes Properties Limited originally sought to build a mixed development of 112 houses and 43 apartments at Ballymoneen Road.
It would be based at a site near the existing Fana Buí estate.
But city planners refused permission, because the development borders the planned route of the Galway Ring Road - and could impact on its future delivery.
An Bord Pleanala has now granted approval - but with it comes considerable amendments to avoid clashing with the potential development of the road.
It acknowledged that if built per the current plans, certain homes would be unacceptably close to the site of rock-blasting.
The revised plans must leave out 14 of the original 156 homes planned, and those lands must be left undeveloped for now, pending the outcome of the embattled Ring Road project.