Shoppers can use recently added taxi bays in Queen Street after a u-turn by the Royal Borough.
The council had added bays for taxi drivers outside the Honeypot and extended them along that side of the road to opposite the former Roma club.
It then removed free one-hour parking for members of the public in those bays.
Angry traders, who were not consulated before the work took place, feared the move would drive shoppers away and hit takings.
They met with the borough on Thursday and it has now agreed to reinstate daytime one-hour public parking in the new spots on the Honeypot side of the road.
Long-standing bays on the opposite side of the road, running from the former Roma club site to Zee Bar, will remain for taxi drivers only at all times.
New signs stating the parking options and restrictions will be put in place over the next few weeks.
The council has lifted a limit on the number of taxi licences it issues and says more parking for drivers is needed.
It is looking at creating a rank in Stafferton Way, extending the rank outside Maidenhead Train Station in Shoppenhangers Road and also using Desborough Academy out of school hours.
Chairman of the borough's licensing panel, Cllr Asghar Majeed, was at last week's meeting.
He said the original decision did not require any consulation because it was a licensing issue and not planning but conceded, with hindsight, the traders should have been asked for their views.
"As soon as we realised the issues we agreed to meet them as soon as possible," Cllr Majeed said.
"They wanted to put their side of the story, which we listened to."
Dominik Potworowski, manager of Belvoir Lettings in Queen Street said: "They made a mistake.
"We called them into a meeting, they listened, agreed with everything and put it back to how we wanted it."
Mike Atkinson owns the Scooter Cafe in Queen Street.
He said: "They listened to us, and came up with a suggestion that returned it to how it was before, in the interest of keeping traders happy."
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