Ismaily suffered an immediate disqualification from the continent's elite club competition after crowd issues halted their second Group C fixture against Tunisian giants Club Africain.
After parts of the crowd threw water bottles and stones at an assistant referee and opposition players after dubious penalty calls, the match was called off in stoppage time.
Club Africain were leading the encounter 2-1 at the time and both teams and officials had to be protected as they fled into the dressing rooms.
On Sunday, Ismaily's lawyer Nasser Azam confirmed that the club's appeal had been accepted by African football's ruling body.
"Today we - the Ismaily delegation - were in a hearing and CAF accepted the club's appeal so we are now back in the African Champions League."
CAF confirmed their decision to reinstate Ismaily, saying the appeal was successful because there was no pitch invasion and they could not establish whether there had been "aggression against the visiting team".
Two clubs from each group qualify for the quarter-finals, with CS Constantine of Algeria and TP Mazembe of the Democratic Republic of Congo the other two sides in Group C.
Ismaily will now resume Group C on zero points, having lost to TP Mazembe 2-0 in their opening match.