The much-anticipated film sparked controversy last week after it emerged it would feature a "gay moment".
It was due for release in Malaysia on Thursday, but Disney said it was being held for a "review" of its content.
The Malaysian Censorship Board (LPF) said on Tuesday it had approved the screening but with "a minor edit concerning a gay moment in the film".
Homosexual activity is illegal in Muslim majority Malaysia, although the country's tourism minister has said banning the film is "ridiculous".
A new release date has yet to be announced.   The live-action remake was granted a "P13 parental guidance classification".
"We have approved the film so there is no more issue. Once a film receives approval, it means it can be screened," LPF Chairman Datuk Abdul Hamid said.
"However, the date of screening and where the screening takes place is not under LPF's jurisdiction. We only look at the content and give a decision on whether the movie gets approved or not."
Local cinema chains have been offering refunds for customers who have purchased tickets in advance.
Beauty and the Beast director Bill Condon has spoken about the "exclusively gay moment" in the film.
It involves LeFou - the sidekick of the film's main antagonist Gaston - who tries to come to terms with feelings for Gaston that swing between lust and admiration, as a side-plot to the main story.
The decision to review the Disney classic in Malaysia courted criticism from netizens, many of whom called it "stupid and laughable".
"Malaysia bans 'Beauty and the Beast' but is okay with nonsense Malay movies with no moral values, just full of brainless jokes," wrote a Twitter user in a tweet which drew more than 4,500 re-tweets.
Priyanka Laxmiâ€
The release of Disney's Beauty and the Beast has been postponed in Malaysia.