The country last month forced bars, nightclubs and restaurants to close at midnight, with no standing customers and no music, following a surge of cases over the Christmas holidays due to the fast-spreading omicron variant.
"We have decided to scale back the restrictions, taking into consideration the course of the pandemic in terms of cases which have been declining in recent weeks," Health Minister Thanos Plevris said in a televised statement.
He said that despite ongoing pressure on the health system, the rate of hospital admissions and discharges and shorter duration and less severe illness for the omicron variant compared to delta allowed authorities to ease the curbs.
Capacity restrictions will remain in place for sports events, while a double mask is mandatory in supermarkets and transport.
Greece reported 19,712 new cases on Thursday. Infections have been easing since a record high of around 50,000 in early January.
A total of 23,083 deaths linked to COVID-19 have been reported since February 2020 and 1,867,935 cases out of a population of 11 million people.