Wireless Festival has been allowed to remain in London's Finsbury Park, but artists will be asked not to swear or wear "offensive" clothes.
The Friends of Finsbury Park complained about noise levels, drug taking and anti-social behaviour at the festival.
But Haringey Council granted festival promoter Live Nation a licence after a review called for by campaigners.
The council's licensing committee decided to amend conditions rather than revoke the licence altogether.
The new conditions include a "request that performers do not sing or play any vulgar, obscene or banned songs or carry out indecent acts or make any vulgar gestures, actions or remarks during the performance".
It also says that performers must "not offend the general public" and gives examples like "attire which expose the groin, private parts, buttock or female breast(s)".
The council said it was down to the organisers to "ensure conditions are met and all reasonable steps are taken".
Live Nation declined to comment on how it plans to implement the conditions.
The last day of the festival will now finish 30 minutes earlier at 21:30 BST and new sound level limits and monitoring will be put in place.
In a statement issued after the meeting, The Friends of Finsbury Park said they were happy the festival would be finishing earlier.
"However, several of our proposed licensing conditions have been disregarded by the committee, of which the most important is our request to reduce the number of attendees at the event."
Drake played a surprise half-hour set at this year's Wireless Festival in July.
The Canadian rapper's unscheduled appearance came after DJ Khaled pulled out of his headline set.
Grime artist Stormzy also performed on day two of the festival.
The event, which attracted crowds of more than 37,000 people, sparked 67 complaints over noise, anti-social behaviour, drug dealing and litter damage, the Local Democracy Reporting Service reported.
Philip Kolvin QC, the barrister representing Live Nation, told a review hearing earlier this month that the "impacts are mostly contained and limited in duration" and that Live Nation was "committed" to the "possibility of improving year-on-year".
Wireless Festival "reflected and celebrated" Haringey's "young and ethnically diverse" character as a borough, he added.
"Wireless is a celebration of grime music. It is a music genre that emerged from London, it is London music," he said.