The 31-year-old will be available for the start of Chelsea's defence of their European title after seeing his suspension reduced by one game
A statement on the governing body's official website confirmed that it has partially upheld Terry's appeal and thus reduced his ban from three games to two.
The statement reads: "Although the central defender is still suspended for three Uefa club competition matches, the third game of the ban has now been deferred for a probationary period of three years.
"The Uefa Appeals Body decided to partially uphold Terry's appeal against the three-match suspension handed down to him by the Uefa Control and Disciplinary Body on 31 May."
The England international had been suspended after being sent off in the Blues' Champions League semi-final second-leg against Barcelona on April 24, where he drove his knee into Alexis Sanchez in an off-the-ball incident.
The centre-half missed his side's triumph over Bayern Munich in the final of the European competition due to the red card, and will also miss the Super Cup clash with Atletico Madrid on August 31.
However, the decision to reduce the ban means Terry will be available for selection for Roberto Di Matteo's side's first group game in this year's tournament, which they qualified for as champions.