Lampard was given straight red by referee Mike Riley in the 2-0 defeat at Anfield on Sunday, for an alleged fierce tackle on Xabi Alonso.
The England midfield marvel's appeal against an automatic three-match suspension turned successful after the FA reviewed the incident.
"At an independent Regulatory Commission hearing today, a claim for wrongful dismissal from Chelsea midfielder Frank Lampard was upheld," a statement on the FA's official site read.
"As a result, Lampard's three-match suspension has been withdrawn."
Lampard is now clear to face Hull City in the Premiership on Saturday.
Bosingwa Escapes Sanction
In the same context, the FA decided to take no action against Blues full-back Jose Bosingwa, following his reckless kick to Liverpool's Yossi Benayoun in the same game.
The FA justified the decision declaring that FIFA regulations prohibit them from taking action against the Portuguese.
According to the world governing body's rules; should an incident be witnessed by a match official, the association has no right to interfere later.
Bosingwa, whose action was seen by lineman Mo Matadar, was not even cautioned at Anfield.
The former Porto defender apologized for his off-the-ball challenge after the game.
Watch Lampard's tackle
Watch Bosingwa's kick