The 25-year-old, who was competing as a rookie in the Cup Series with the Legacy Motor Club team co-owned by Jimmie Johnson, was suspended by the team and later NASCAR itself on 5 August.
It was deemed that Gragson violated the sport's code of conduct after liking a meme that mocked the 2020 murder of George Floyd at the hands of Minneapolis police officers. A few days later, he officially parted ways with Legacy M.C.
The team has since put Mike Rockenfeller, Josh Berry, and Carson Hocevar behind the wheel of its #42 Chevrolet.
In 2024, the organisation will switch to Toyota, and recently announced that John-Hunter Nemechek will return to Cup to drive the #42 car full-time next year.
Gragson has now successfully completed diversity and inclusion training via RISE, a national nonprofit organisation that educates and empowers the sports community to eliminate racial discrimination, champion social justice and improve race relations.
The group recommended his reinstatement and Gragson is now eligible to return to all NASCAR activity.
He has since released the following statement: "I want to express my sincere gratitude to NASCAR for reinstating me.
"Over the past several weeks, I have dedicated myself to personal growth and reflection, and I believe I have become a better person because of it. I couldn't have done it without the support of my family and the NASCAR industry.
"I am now more focused and committed than ever to representing my future team in the best way possible.
"I'm eager to get back behind the wheel and compete at the highest level, giving it my all on and off the track. Thank you to everyone who has been a part of this journey, and I can't wait to make the most of this second chance."
Gragson has 39 Cup starts with a best finish of fifth, which came at Daytona in 2022.
He won 13 races in the second-tier Xfinity Series and ended the 2022 season as the championship runner-up.
