The Planning Inspectorate has given the plans the go-ahead after KFC lodged an appeal in October.
The proposal is for a drive-through restaurant on Solent Way, Whiteley, near Junction 9 of the M27.
Winchester City Council turned down the plans in April, with one councillor saying it would create a ‘perfect storm of traffic issues’ and fail to meet the area’s zoning classification.
Speaking at the time, Councillor Jane Rutter said: 'We understand there are huge concerns about traffic.
'The council is supposed to be building relief roads in the area, and the restaurant was planned to be built at the same time.
'As I said at the meeting, this would have created a perfect storm of traffic issues.'
But a report by the Planning Inspectorate found that the scheme would have a ‘very limited impact’.
It said: ‘The proposal would be accessed by the road off Solent Way which was approved as part of the scheme for the adjacent Lidl foodstore.
‘Whilst it is accepted that approximately 40 per cent of trips would be new trips onto the network, this would nevertheless translate in a very limited impact, having regard to the net increase in the number of journeys made and the periods at which the majority of these would occur.’
The plans for the restaurant claims it will create 55 jobs, including 22 full time and 33 part time.
The American fast food chain has only one franchise in Fareham, a drive-thru restaurant in Fareham Trade Park on Lederle Lane.