Wing, owned by Google's parent company Alphabet, will deliver takeaway food, coffee and medicines by drone to about 100 homes in Canberra.
It has been testing its drones in Australia since 2014 but many residents had complained about the noise.
Wing said the feedback got during its trials had been "valuable" and it hoped to "continue the dialogue".
Australia's aviation authority gave Wing permission to launch a commercial service after examining its safety record and operational plans.
It judged that the company posed no risk to residents or other aircraft.
Wing's drones deliver small packages they lower which into the customer's garden on a length of the string.
However, approval has several conditions attached. It will only allow the drones to fly during the day and not before 08:00 AEST at the weekend.
It will not allow them to fly over crowds or main roads.
Trials of the drones had attracted complaints from residents in Bonython, Canberra, who said they were noisy and intrusive.
The Bonython Against Drones campaign said they could hear the devices from "a long way off, both coming and leaving".
"When they do a delivery drop, they hover over the site and it sounds like a loud, squealing vacuum cleaner," the group said on its website.
In response, Wing said it had developed a quieter drone. The aviation authority says Wing must use this quieter drone for its commercial service.
In order to fulfill the basic functions of our service, the user hereby agrees to allow Xiaomi to collect, process and use personal information which shall include but not be limited to written threads, pictures, comments, replies in the Mi Community, and relevant data types listed in Xiaomi's Private Policy. By selecting "Agree", you agree to Xiaomi's Private Policy and Content Policy .