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.
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.
The resolution, backed by 13 votes in favour, was passed after the UN Security Council accused Eritrea of arming, training and equipping armed groups including al-Shabab.
The UN had frequently expressed concern about the flow of weapons into Somalia, where Islamist militants were battling government forces for control of the capital Mogadishu.