An Bord Pleanala has given the green light for significant expansion plans at Galway Clinic.
The project is a two-storey expansion with extra assessment and diagnostic facilities, as well as a new ambulance bay.
The approval comes after the clinic was structurally damaged by Storm Eowyn, though the affected section is away from the main hospital and clinical areas.
Permission for the project was granted by city planners early last year, though a number of objections were lodged by local residents.
They claimed the existing entrance layout is unsafe and a serious traffic hazard, and extra capacity would only make the problem worse.
They also took issue with the planned removal of almost 50 parking spaces.
One local resident claimed the move will "aggravate" the existing problem of visitors parking along the adjacent public roads.
A survey carried out as part of the planning application found that during its busiest times, the hospital has almost 70 car parking spaces free - around 10 percent of the total capacity.
It concluded the extra spaces lost to the expansion project could be restored in the near future - as more people use public transport and other sustainable travel options.
An Bord Pleanala has now granted permission, finding the development would be acceptable in terms of pedestrian and traffic safety.