The decision came after a week of trade war between the two countries sparked by the migrant crisis.
"Yes, the border is now open to all traffic," an officer of the border police at the key Bajakovo crossing told Reuters by telephone.
The movement of all trucks and vehicles "regardless of registration" was allowed to reopen at 5 p.m. local time (15:00 GMT) through the Bajakovo- Batrovci checkpoint on the E70 highway, the most important point between the two countries, the Government said on Twitter.
Thousands of migrants from conflict-torn regions in the Middle East and Africa had been crossing into Croatia on a daily basis, in search of alternative routes to Western Europe after Hungary sealed its border with Serbia.
In recent months, the European Union has faced the largest wave of refugees since World War II. Over 500,000 migrants and refugees have arrived in the bloc so far this year, according to the European Commission.
