North Yorkshire Council has approved a plan to convert The Pines care home on Harlow Moor Drive into 12 apartments.
The 28-bed care home was forced to close in 2016 following an inadequate rating by the regulator Care Quality Commission.
It sits in a prominent location opposite Valley Gardens and the Pinewoods in the town.
Plans by Ilkley-based developer Flatcap Properties LLP follow two refused bids to turn the building into flats.
However, in both cases, the council said the property had not been sufficiently marketed as a care home before the application was submitted.
This is a requirement when changing the use of a care home to prove that it is no longer viable.
This time, the building was put up for sale as a care home for 12 months without any takers.
A report said due to its configuration, the property would be refused a new CQC registration due to small room sizes.
In the approved plans, the apartments will be formed through a subdivision of the building. However, some external changes are proposed primarily to create individual entrances to a number of apartments.
Residents will be able to use free on-street parking on Harlow Moor Drive.
A planning statement attached to the application said:
“To conclude, we believe the proposals provide a high-quality and attractive scheme and represent a significant opportunity to secure the positive development of this redundant building, which will, in our view, enhance this site and the surrounding area as a whole.
“Overall, careful thought has been given to the design and layout of the proposed development and as such it is considered that the design of the proposal is appropriate, and it is our view that the new development will have a positive impact on this area of Harrogate.”