Plans to build an extension at the back of the former Ali Raj restaurant on Cheltenham Crescent have been approved by Harrogate Borough Council.
The plans were submitted by the owners of the building, who also own the pub downstairs, The Little Ale House.
Richard Park and his wife Danni opened The Little Ale House in 2016 to recreate a rustic country pub atmosphere in the town centre.
The Ali Raj was a longstanding Indian and Bangladeshi restaurant in Harrogate that closed in 2021. It was the first Bangladeshi restaurant in town when it opened more than 35 years ago.
A change of use application was approved in February to turn the restaurant into a bar.
The latest plans will create improved back-of-house and toilet facilities and a roof terrace to increase seating capacity.
Mr Park told the Stray Ferret that building work is set to begin next summer when he will say which business will use the space.
He stressed the new venue will not be an extension of the Little Ale House, which will remain a separate business downstairs.

A CGI image of how the extension will look
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Little Ale House to reopen by serving substantial meals
A Harrogate pub is set to reopen after finding a way to serve substantial meals with drinks.
The Little Ale House closed during the second national lockdown in November and did not reopen this month because tier two rules stated only pubs serving substantial meals could do so.
This meant wet-led pubs, which do not have kitchens to serve meals, stayed closed.
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But with little prospect of North Yorkshire moving to tier one anytime soon, the Little Ale House has decided to take action allowing it to reopen in the run-up to Christmas.
The independent micropub will offer a pie and peas warmer for visitors. It will serve pork pies and vegetarians pies.
Richard Park, co-owner at the Little Ale House, told the Stray Ferret:
“We are excited to open but this is not some golden goose. With restrictions on household mixing and drinks, sales will be reduced significantly.
“It will not be the same as before. But we cannot wait to move into tier one before we open, we have to keep our heads above water.”