Sony Pictures comedy The Interview will now be screened in more than 200 cinemas, a spokesman said.
It comes after the studio scrapped a wide release last week over security fears made by hackers over the plot line to assassinate North Korean leader Kim Jong-Un.
The film will be be released in America on Christmas Day.
President Barack Obama has welcomed the decision from Sony to release "The Interview" in some cinemas.
"The president applauds Sony's decision to authorise screenings of the film," White House spokesman Eric Schultz said in a statement.
"As the president made clear, we are a country that believes in free speech, and the right of artistic expression. The decision made by Sony and participating theaters allows people to make their own choices about the film, and we welcome that outcome," Schultz said.
Comic actor Seth Rogen had this reaction on Twitter to Sony's decision to release The Interview at some cinemas:
The people have spoken! Freedom has prevailed! Sony didn't give up! The Interview will be shown at theaters willing to play it on Xmas day!
Sony Pictures Entertainment has announced that its film, The Interview, will have a "limited release" on Christmas day.
A statement from the company's CEO said it was trying to "secure more platforms and more theaters" to show the film:
We have never given up on releasing The Interview and we're excited our movie will be in a number of theaters on Christmas Day. At the same time, we are continuing our efforts to secure more platforms and more theaters so that this movie reaches the largest possible audience.
I want to thank our talent on The Interview and our employees, who have worked tirelessly through the many challenges we have all faced over the last month. While we hope this is only the first step of the film's release, we are proud to make it available to the public and to have stood up to those who attempted to suppress free speech.
Sony has reversed its decision to cancel the release of The Interview, according to Tim League, who runs independent cinemas in Texas.
Breaking news: Sony has authorized screenings of THE INTERVIEW on Christmas Day. We are making shows available within the hour. #Victory
The Associated Press news agency said several cinemas had confirmed Sony's decision.
Sony is yet to comment.
North Korea's dispute with the US over computer hacking took a new twist when the communist state lost Internet access for several hours.Read the full story ›
Jim Cowie, chief scientist for the company, said in a phone call:
The question for the next few hours is whether it will return to the unstable fluctuations we saw before the outage.
North Korea's internet links have been restored after a total black-out lasting around nine-and-a-half hours, an internet monitoring company has said.
It is not immediately clear if the internet connectivity problems were an act of retribution for a major intrusion at Sony Pictures Entertainment which the FBI last week linked to North Korea.
US internet monitoring company Dyn Research posted this graph to Twitter, highlighting the outage:
A North Korean envoy to the United Nations says the country "totally rejects" the US push to put Pyongyang's humans rights record on the UN Security Council's agenda, Reuters have reported.
Earlier today, members of the UN Security Council voted to override China's objections and formally add the situation in North Korea, including allegations of grave human rights abuses, to the council's agenda.
UN diplomat Kim Song accused the United States of raising the issue as a political weapon to pressure North Korea. He said a decision on how to respond to the council decision would be made in Pyongyang, North Korea's capital.
Washington's UN envoy has dismissed North Korean demands for a joint investigation into the hacking of Sony Pictures and threats of retaliation.
It is exactly the kind of behavior we have come to expect from a regime that threatened to take 'merciless counter-measures' against the US over a Hollywood comedy, and has no qualms about holding tens of thousands of people in harrowing gulags. It is incumbent on the Security Council to consider the (UN) Commission of Inquiry's recommendation that the situation in North Korea be referred to the International Criminal Court and to consider other appropriate action on accountability.
Ambassador Samantha Power made the comments in a speech to the UN Security Council.