Raggi, who was elected Rome's first female mayor in June, was accused of being a killjoy for trying to ban firework displays, especially having cancelled a traditional New Year's Eve rock concert in Circus Maximus due to a lack of sponsors.
She also came under fire for the capital's 'austerity' Christmas tree, described as being the 'shabbiest' in Italy.
The ban, which suggested issuing anyone caught launching a firework between December 29th and midnight on January 1st with a €500 fine, was intended to promote public safety.
But the regional administrative court (TAR) quashed the ordinance after an appeal from producers and distributors of fireworks, who rake in between €2 and €3 million during the period, Roma Today reported.
Firework displays are popular in Italy but often cause injuries and, sometimes, deaths. Two people were killed and 361 injured during fireworks events over the Christmas and New Year's Eve period in 2013. The number of injuries dropped to 50 a year later thanks to public awareness campaigns, although a seven-year-old boy lost his hand.
Last year, several cities and towns across Italy banned or limited fireworks amid air pollution concerns.