Following protests, University of Hyderabad on Friday evening revoked the suspension of associate professor K Y Ratnam and assistant professor Tathagat Sengupta.
Both had been on a relay hunger strike since June 14 after they were suspended.
A review committee of the varsity recommended revocation of their suspension.
The suspension "stands revoked with immediate effect," an order signed by Vice Chancellor Appa Rao Podile said late on Friday.
Pro Vice-Chancellor-1 and varsity spokesperson Vipin Srivastava also confirmed the development.
SC/ST Teachers Forum and others had protested the suspension, calling it an "act of vindictiveness".
A group of teachers earlier today held a demonstration in front of the varsity's administrative office, demanding immediate revocation of suspension, and also met the VC.
The administration suspended Ratnam and Sengupta on the ground that they had been arrested by the police (along with 20 students) for more than 48 hours following the violent protest by students outside the VC's official residence on March 22.
The students were opposed to Podile resuming the duty in the aftermath of Dalit research scholar Rohit Vemula's suicide in his hostel room in January.
Ratnam and Sengupta failed to inform their superiors about their arrest as is required under the rules, the administration said, while the two professors contended that they had informed their respective heads of the department.
Ratnam is Head of the Centre for Ambedkar Studies and faculty member of Department of Political Science, and Sengupta a faculty member of Department of Mathematics.