Shropshire Homes applied to the to council's planning department last year for permission to build 86 two, three and four-bedroom homes, including 15 affordable properties on land in Pontesbury.
They will also construct a community hub, Co-op store, village square and green, two new accesses and internal roads and parking and garaging. The current children's nursery will be relocated to the eastern corner of the site.
The site is located north of Hall Bank, which is part of the A488 and south of the old railway line, which is now a recreational foot/cycle path, on the northern periphery of the village.
The scheme met with some local objections from residents who said the loss of green space would be at the detriment of the village. They also queried whether the village's one-way system could cope with the inevitable increase in traffic and if the village could support any further development.
Pontesbury Parish Council came out in support of the plans but asked that improvements be made to the pedestrian access along the bottom of the site at the A488.
Shropshire Council's planning department granted full permission this week.