Qantas Airways and Virgin Australia resumed normal flights except to the Cocos Islands in the Indian Ocean.
Flights had been suspended after ash from Mount Kelud in eastern Java erupted, sending ash up to 500km away.
The resumption of flights came after the Volcanic Ash Advisory Centre in the northern Australian city of Darwin said the ash was drifting west-southwest over the ocean.
"The majority of ash cloud from the initial eruption is dispersing at approximately 17 kilometres and below," the centre said.
"High-level ash may stay in the atmosphere for a number of days."