Abbey End will be home to a new drinking spot after planners overlooked concerns and agreed to press on with the development.
Warwick District Council this week approved a bid for Blockbuster and Jade restaurant to be knocked into one and extended to house the pub.
Planners deemed that the project was in keeping with the area despite a call from Kenilworth Town Council to scrap the plans to save retail space in the town centre.
Speaking at Tuesday’s planning meeting, officers said that the application for drinks and live music licence had already been approved and received no objections.
Cllr Alan Boad (Lib Dem, Leam) said: “This is a secondary area to the town centre and you would expect noise there.
“This does not saturate the area or take over the retail.”
Cllr Bertie MacKay (Ind, Stoneleigh), who chaired the meeting, said last minute objections had come in from residents who “were not previously aware of the application” and raised concerns over the close proximity of elderly care homes.
But objections were overlooked by all seven voting on the committee.
It is not yet known which company will move into the premises but work is expected to begin later this year.
The move will see the loss of just one retail unit in the area, the currently empty Blockbuster Video.
An application has been submitted by Indian Edge restaurant owners to expand into half of the former Co-op Elecrix building on Warwick Road. This will be considered in the coming weeks.