Lincolnshire PCT made the ruling on funding for knee and hip replacements as part of a savings drive in May 2006.
Managers have now reversed the decision, saying they did not want to deny treatment to those who needed it.
Smokers can undergo operations if they take part in cessation classes. Obese patients must try to lose weight.
Health risks
People with a body mass index (BMI) of 30 or more were originally prevented from having routine surgery, including hysterectomies, under a ruling made when Lincolnshire had three separate PCTs.
Those with a BMI of 35 or lower will now be eligible for the operations, while people with a higher BMI will need to take part in a weight loss programme.
Dr Martin McShane from the PCT, said: "We took the policy that had been implemented before Lincolnshire PCT came into effect and have said: Look we know that smoking and being overweight carries health risks but we don't want to deny treatment to people who need it.
"The difference now is that people who are overweight will be advised that they should attempt to lose weight before surgery and people who smoke will be advised that they should try and stop smoking.
"It improves the outcomes of surgery and reduces complication rates and we know that it will benefit people in the short term and long term as well."
The restrictions had been introduced in 2006 in a bid to save the health service up to £3m a year.
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