The Queen Alexandra Hospital has been rated 'good' by inspectors, more than three years after the hospital was told it 'requires improvement'.
CQC inspectors found the hospital was good at being effective, caring and responsive, while also praising the leadership.
But urgent and emergency services were criticised, being rated as requires improvement across all five CQC inspection criteria.
The hospital was also rated as requires improvement for safety overall.
The hospital said it was "delighted" with the CQC report, which it described as "testament to the hard work" of "teams across the organisation."
The Queen Alexandra Hospital is part of Portsmouth Hospital NHS Trust, which also includes Gosport War Memorial Hospital, St Mary's Hospital and Petersfield Hospital.
The majority of its services are focused at the QA, providing emergency care, maternity services and outpatients.
The CQC praised the hospital for the effectiveness of their care, as staff teams worked well together to delivering good quality care and advice to their patients.
Inspectors also found that staff also showed compassion and kindness, with particular respect to the cultural and religious needs of their patients.
The hospital leadership was also praised for its integrity and understanding the issues that the trust faced.
Despite some positive results, urgent and emergency services were rated as requires improvement across all five CQC inspection areas.
Inspectors highlighted ambulance waiting times, a lack of appropriate clinical space in the emergency department and some problems with infection control in the hospital.
The hospital has previously seen ambulances queuing outside A&E as it struggled to cope with demand.
The trust said "the areas for improvement...are all known to us" and that it "already had plans in place" to further develop services for the benefit of patients.