Up to four households - up from two - will be able to join together to form a single household from Saturday 22 August, if the situation remains 'stable'.
A meal after a wedding, civil partnership or funeral will be allowed for up to 30 people indoors if social distancing can be maintained will also be permitted.
Currently people can only meet up indoors if they are part of an extended household.
It comes as the Welsh Government confirmed late on Thursday night that travellers from France, Malta and Holland have been added to the list of countries where returning tourists must quarantine for 14 days.
Mark Drakeford said it was important these 'step-by-step' changes as part of the next restrictions review do not 'jeopardise' progress.
''We are learning from what is happening across the UK and outbreaks are mainly linked to people meeting others inside the home. That is why it is so important we don’t invite people outside our extended households into our homes. We have made so much progress and we mustn’t jeopardise this.''
He also said all it would be obligatory for hospitality businesses to collect customers' contact details to help tracing to 'quickly respond to any outbreaks'.
“There are also indications from other parts of the UK where pubs opened earlier than Wales that outbreaks have been linked to those places,“ he added.
Since last week, groups of up to 30 people from different households have been able to meet outside, as long as they socially distance.
Gyms, swimming pools, spas and leisure centres also re-opened reopened.