Applause rang out in the town hall as Maidenhead development control panel gave its approval to the proposal by the Alexander Devine Children's Hospice Service (ADCHS).
Supporters wearing charity t-shirts packed in to the council chamber to hear the verdict on the facility, which is set to be built next to Woodlands Business Park.
When complete it will consist of a large family-style house with accommodation for up to six children up to the age of 19 with life-limiting and life-threatening conditions.
The application faces a review by the Secretary of State before it can be rubber stamped as it would involve building on greenbelt land - contrary to planning policy.
But panel chairman Cllr Derek Wilson feels the council made the right decision in giving its approval.
"I believe that this is a case of very special circumstances," he explained.
The ADCHS was set up four years ago by Windsor couple John and Fiona Devine in memory of their son Alexander, who died from a brain tumour.
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