Council planners at the meeting passed the application to formalise a change of use of the mosque on Annan Road on condition it is for the benefit only of the Dumfries Islamic Society.
The council also said it would investigate some of the issues raised by local people to help community relations.
The Scottish Defence League decided to mount a separate protest of their own in the Whitesands area of Dumfries on Saturday.
Four people from the demonstration were arrested.
A rival anti-fascist march organised by trades unionists was also held on Saturday.
Plans to extend the use of a mosque in Dumfries which provoked a demonstration by an anti-islamic group have been approved.
The council agreed that the Dumfries Islamic Society can have people sleeping over at the mosque on Annan Road.
Local people started a petition against the proposal, most objecting because they said there was not enough parking and too much noise during the night.
Plans to extend the use of a mosque in Dumfries which provoked a demonstration by the anti-islamic group the Scottish Defence League (SDL) over the weekend go before planners today.
Four people were arrested during the protests.