The UN Security Council has unanimously agreed to lift sanctions against Eritrea after nine years.
An arms embargo, asset freeze, and travel ban were imposed in 2009 amid claims Eritrea supported al-Shabab militants in Somalia. Eritrea always denied the accusations.
The resolution, drafted by the UK, was backed by the US and its allies.
The UN vote comes amid a thaw in relations between Eritrea and its neighbours following years of conflict.
BBC World Service Africa editor Mary Harper says the politically repressive state had long been a global pariah, and was likened by some commentators to North Korea.
Eritrea agreed a peace deal with Ethiopia in June following two decades of animosity, while the leader of Eritrea and the UN-backed government in Somalia recently signed a joint cooperation agreement.
