Some Labour MPs had been calling for Abbott to be readmitted to Labour and more than 38,000 people had signed a petition backing her return.
Labour MP Bell Ribeiro-Addy told BBC Newsnight that Abbott had “given over 40 years of her life to the Labour movement and she is pleased to be back in the party that is her home”.
She said she understood some Labour MPs might have concerns but that Abbott had been “very clear and sincere in her apology”.
However, Phil Rosenberg, president of the Board of Deputies of British Jews, told the same programme he was “very sad, very concerned”.
“In many ways Diane Abbott is an icon, the first black female MP… so you’d hope we would find common cause in fighting racism in all its different guises.
“But over and over again she is making these statements that are offensive to the Jewish community at a time when there is heightened antisemitism, deadly antisemitism.”
The Jewish Labour Movement said it was right that the case had been through the party’s process but added: “Should Diane Abbott’s conduct as a Labour MP fall below what is expected for a third time, we will expect our party to take firm and decisive action.”
Following the party’s decision to accept Abbott and Reid back into the parliamentary party, two MPs remain suspended from Labour.
Karl Turner was suspended in March for making “uncollegiate” comments about colleagues, BBC News understands.
However, Turner said it was “clear” his suspension was due to his criticism of the government’s policy on jury trials.
Dan Norris, the MP for North East Somerset and Hanham, was suspended after being arrested on suspicion of sexual offences.
