The vote comes after the Westminster City Council urged the groups to come together and reach a compromise.
The ban was implemented for the first time last year after the Vietnamese American Federation of Southern California took over the parade from the budget-strapped city.
This year the Federation announced the ban would be continued this year, but groups such as the Viet Rainbow of Orange County organized against their exclusion.
The Federation agreed to bring all the groups together for a Town Hall meeting and open the matter for a vote.
Vietnamese American community members voted 51-36 to allow gays to march in the parade.
You can read various reaction to the vote in the Los Angeles Times.