"Following my visit to Iran in April, a technical assessment was successfully carried out in May," EU Transport Commissioner Violeta Bulc said in a statement.
"Based on this I am happy to announce that we are now able to allow most aircrafts from Iran Air back into European skies," Bulc said.
Previously, only the carrier's EU-manufactured Airbus planes could operate in the bloc.
Iran's commercial airlines were badly hit by US and EU sanctions imposed over its contested nuclear programme, denying them access to crucial spare parts for their aircraft.
An EU-brokered deal in 2015 ended years of deadlock between the two sides, with sanctions being lifted in return for Iran committing to not develop nuclear weapons.
As a result, Iran earlier this year was able to place a massive order for more than 100 Airbus planes and it is in talks with US aerospace giant Boeing.
Bulc also said the 28-member bloc had removed all Zambian airlines from the safety blacklist after "seven years of work and extensive European technical assistance."
The Air Safety List is updated regularly and with Thursday's announcement, it names 214 airlines in 19 countries which fail to meet EU oversight standards.
Two other airlines are banned on safety concerns -- Iraqi Airways and Suriname's Blue Wing Airlines -- while another six are partially restricted in the aircraft types they can fly in the EU.
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