Developers have been given outline planning permission to build 29 homes in Haughley.
Michael Howard Homes lodged plans to develop land north of Station Road this year with 29 homes, 10 of which will be affordable.
Despite some concerns over the types of homes which may be built there and the land being outside of the existing homes boundary in the village, Mid Suffolk District Council's development control committee gave unanimous approval for outline permission.
The developers will now work on detailed plans, which must be approved by the committee before work can begin.
Councillor Sarah Mansel said: "I am really pleased that we have both energy sustainability and rainwater harvesting mentioned in the conditions, and I really hope this is the way we are going to go forward as a council.
"I too am refreshed by the fact that here we have an application that the parish council and the neighbourhood plan are supporting, albeit it is outside of the existing red line and it's not even in our draft joint local plan as part of the settlement boundary.
"But it does seem like a fairly logical extension to the village."
A condition has been imposed that the developers must agree measures with the council for the 'village gateway' and must address the housing need of the village.
The report said the village was in need of one-bedroom homes, but there was no indication that the new development would include those.
Ward councillor Rachel Eburne said: "The indicative housing mix isn't representative of the housing need for Haughley.
"There is a need, as shown in the papers, for one-bed housing, not for five-bed housing, and I am very concerned that this goes ahead with the current layout without that need for one-bed housing being included in an indicative layout."
She added that the developers should engage with the community as plans progress.
The plans have been supported by Haughley Parish Council, which has asked to be kept abreast of developments as they progress.
It is not yet clear when the detailed plans, known as a submission of reserved matters, will come forward.
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