Chadian leaders have criticized the US for putting it on a list that includes North Korea, Iran and Venezuela.
US President Donald Trump on Tuesday lifted a travel ban imposed on Chadian citizens following a six-month government review.
"The president announced today that Chad has raised its security standards to meet important baseline U.S. national security requirements", the Department of Homeland Security announced, AFP reported.More news: Xander Bogaerts to miss 10-14 days with small fracture in ankle
Chad has been an ally of the United States in fighting jihadist groups - some linked to al Qaeda and Islamic State - in the Sahel.
Officials had also suggested that Chad had a "significant" terrorist presence and accused the country of inadequate information sharing regarding security issues.
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Chad has been a key USA counterterrorism partner in the fight against threats to Africa's Sahel region posed by al-Qaida affiliates like Boko Haram and the newly designated West Africa wing of the Islamic State group.
By lifting travel restrictions on nationals of Chad, the United States is demonstrating that the criteria set forth in Proclamation 9645 can and do work to enhance the security of the United States.
Chad was placed on the list last September because of an office supply glitch that prevented it from supplying homeland security officials with up to date samples of its passports, according to U.S. officials. During his visit to Chad in March, Secretary of State Rex Tillerson, who has since been fired, faced repeated questions on why the country still faced the travel ban.More news: Trump re-evaluating interview with Mueller after Cohen raid
Courts struck down the first two versions of Trump's travel ban, and the current one is narrower in scope than its predecessors. However, the explanation mystified security experts, who pointed to Chad's key role in USA counterterrorism efforts in the region, including the fight against threats from Boko Haram and Islamic State affiliates in the Sahel.