According to BBC, the Gulf kingdom is the only country in the world that bans women from driving.
Until now, only men were allowed licences and women who drove in public risked being arrested and fined.
Praise for the move has been pouring in from inside the Saudi kingdom, as well as around the world. US President Donald Trump said it was a "positive step" towards promoting women's rights.
Campaigner Sahar Nassif said she was "very, very excited - jumping up and down and laughing".
"I'm going to buy my dream car, a convertible Mustang, and it's going to be black and yellow!" BBC reports.
The country's US ambassador, Prince Khaled bin Salman, confirmed that women would not have to get male permission to take driving lessons, and would be able to drive anywhere they liked.
He said it was "an historic and big day" and "the right decision at the right time".