This decision comes after meetings between Redbridge Council’s leader Kam Rai and London transport chiefs.
Signs for the Woodford Avenue bus lane were covered up in June when the bus lane was suspended pending a review.
The decision to pause the scheme followed concerns from residents about increased traffic coming as a result.
But Redbridge Council has announced the bus lane is coming back into operation.
Councillor Kam Rai, the leader of Redbridge Council, met with London’s deputy mayor for transport, Seb Dance, and Transport for London (TfL) officials to discuss the bus lane and other transport issues in Redbridge.
The lane, which runs in both directions in Woodford Avenue between Longwood Gardens and Redbridge Lane East roundabout, and Clayhall Avenue, will operate from 7am to 10am and 4pm to 7pm, Monday to Friday.
The council said the change aims to reduce disruption for residents while ensuring efficient public transport.
Councillor Rai said: “As a local resident, I know the impact changes to the road network can have on our neighbours, and we are committed to ensuring they can go about their busy lives with as little disruption as possible.
“I know local people, particularly in the surrounding areas, had concerns about the initial installation and operating times of the bus lane, and we engaged with our community on the improvements we could work towards.
“That’s why we met the deputy mayor and senior TfL officials to discuss improving the Woodford Avenue bus lane.
“I’m pleased to confirm they have listened to our concerns, meaning the bus lane will operate only during the early morning and early evening rush hour periods, meaning no restrictions are in place for the best part of the day and weekends.”
He called the move “a collective effort between TfL, us, and residents, with a positive outcome that balances the needs of public transport and other road users”.
The operating date is subject to formal processes, the council said, but a specific start date has not been confirmed.
The lane was initially proposed to operate 24/7.