Wednesday had not been able to make one signing during the summer transfer window, which closed for permanent signings on August 9, after breaching rules regarding profitability and sustainability regulations.
But the lifting of the embargo means the Owls can now sign players on loan before the transfer deadline of August 31, and offer new contracts to players.
“Sheffield Wednesday are pleased to inform supporters that the current transfer embargo imposed by the EFL has been lifted with immediate effect.
“The club has worked diligently alongside the EFL in a bid to ensure compliance with Profitability and Sustainability regulations.
“We would like to place on record our thanks to the EFL Executive for the support and guidance given to Sheffield Wednesday surrounding this issue.
“We would also like to thank our loyal fans for their continued support as we move forward together on and off the pitch.”