World sports bodies led by the IOC and football governing body FIFA suspended Kuwait in October 2015 for the second time since 2010 for "undue political interference."
That meant the few Kuwaiti athletes who participated at Rio in 2016 did so as "Independent Olympic Athletes."
The IOC said in a statement that it "acknowledged the progress" and the "positive discussions with the Government of Kuwait."
It said that "in the interest of Kuwaiti athletes and as a gesture of goodwill" the IOC had "decided to provisionally lift the suspension."
But, it warned, the reasons for the suspension "remain valid."
The statement said the IOC Executive Board would review the situation at their next meeting in Buenos Aires on October 3-4.