The Bull and Heifer in the middle of the village of Bettws Cedewain.
Owners, G and A leisure will now be able to replace 50 square metres of existing buildings and storage areas with a new 85 square metre extension after Powys County Council approved both the full and conservation area applications.
Councillors heard that the Bull and Heifer was a flourishing restaurant and public house before the recent lockdown due to Covid-19, causing the business to close its doors.
During lockdown the owners decided to make changes to the storage and kitchen area at the rear of the premises.
The extension will include an area off the bar for a pool table, a small extension to the kitchen area, the provision of cold and dry storage and a cellar.
Powys County Council, planning officer, Gwyn Humphreys said: “Comments have been received from the Royal Commission on the Ancient and Historic Monuments of Wales confirming that the structures proposed for demolition are relatively recent and of little or no historical or architectural interest.
“This is further reinforced by comments received from Clwyd-Powys Archaeological Trust, which confirm that there are no archaeological implications for the demolition of the buildings as proposed.
One of the issues facing the applicants is that the pub lies in a C2 flood zone, as the Bechan Brook runs 20 metres to the southwest of the building.
On the extension, the Welsh Government’s environment body, Natural Resources Wales has said flood resistance or resilience measures need to be part of the design and construction of the development.
Mr Humphreys added: “It is considered that the proposed development complies with relevant planning policy and the recommendation is therefore one of conditional consent.”
The pub was once the village post office.