The agency set up to tackle organised drug crime in Scotland has made "good progress" after making several changes since it was last inspected.
The SDEA aims to stop drug trafficking and organised crime
The latest report on the Scottish Drug Enforcement Agency (SDEA) has praised it for "responding positively" to previous criticism.
The SDEA was formed to prevent and detect serious and organised crime in Scotland in June 2000.
It claims to have achieved "significant success" in tackling drug trafficking.
A review inspection by Her Majesty's Inspectorate of Constabulary (HMIC) in 2003, had made 21 recommendations, covering subjects from leadership, policy and strategy to partnerships and resources, people management and processes.
Since then a number of changes have been made and seven of the recommendations fully addressed.
A follow-up HMIC inspection carried out in December 2004 found that since the primary inspection, the SDEA had improved management processes, improved the flow of intelligence and established an operational protocol between the agency and the Scottish police forces in relation to serious crime.
Other areas examined as part of the review inspection included progress on tackling money laundering and developing the services provided by the Scottish Witness Liaison Unit, which moved to the agency in April 2003.
Kenny McInnes, HMIC assistant inspector of constabulary, praised the SDEA for its efforts.
He said: "The SDEA has embraced the spirit of the primary inspection report and initiated a robust and structured programme of change.
"It has discharged a number of the recommendations from the primary inspection within a relatively short period, including improving the flow of intelligence and establishing an operational protocol between the agency and Scottish police forces in relation to serious crime.
"HMIC will conduct a further review inspection of the SDEA during 2006 when we will revisit the recommendations that remain to be discharged, and examine progress in other areas where HMIC retains an interest."
A primary inspection of each police force and common police service is made every five years.
In the intervening years, two review inspections take place at 18-month intervals.
These focus on a range of issues including progress against recommendations made in the preceding primary inspections.