The developer says the conversion will be "sympathetic" and will preserve the heritage.
The grandstand on Beach Road in Cottenham was built 1925 for crowds to watch the horse racing.
In recent years though, the site has become neglected and is a vandalism hotspot.
It hasn't been used for horse events since 2021.
Now, plans have been approved to give it a new lease of life as a four-bedroom family home.
Photo: Dakin Estates
Here's what the developer, Dakin Estates, had to say:
"Internally, there are already elements similar to domestic accommodation and infrastructure.
"This building maintains associations with the long history of amateur horse racing at Cottenham, and is therefore deserving of preservation by sympathetic conversion to become a fitting memorial to local history, the history of horse racing as well as to the sporting heritage of Cambridge University."
South Cambridgeshire District Council approved the plans, with councillors saying they were pleased the proposal would repair and restore the building and secure it's long term preservation.
Photo: Dakin Estates