Flats, colony flats, and townhouses are included in the plans, with 163 of the units being for affordable housing.
The affordable housing will be delivered by Cullross on behalf of Hillcrest Homes, while the remainder of the site is to be used for private housing.
An open park space will be provided for the local community and the layout integrates with the existing residential development.
The proposed development is allocated as housing site HSG27 in the Council’s Local Development Plan, where residential development is acceptable in principle but remains subject to conditions.
It plans to deliver a ’20-minute neighbourhood’, being within a 20-minute walk of Fort Kinnaird Retail Park and Queen Margaret University as well as a number of active travel connections.
The proposals include education and healthcare contributions to mitigate its impact on the locality.
Mark Beaton, Director of Cullross Ltd., said: “We are delighted to have had our application for residential development at Newcraighall East granted, subject to conditions.
“Extensive community consultation was undertaken on our ambitious proposals which will bring much-needed housing, the majority of which will be affordable housing, to Edinburgh.
“As the project progresses to site, we look forward to continuing to engage with the local community on this.”
Angela Linton, Hillcrest Chief Executive, said: “We’re delighted to again partner with Cullross to deliver another high-profile development.
“The 163 Hillcrest properties, which will form a significant portion of this development in Newcraighall, will offer a welcome boost of high-quality affordable housing to the city of Edinburgh.”
Rod Duncan, director of jmarchitects, said: “jmarchitects are delighted that the planning application for Newcraighall has been approved.
“The six month process from start to approval is testament to the team and to the City of Edinburgh Council.
“The plan on an allocated site will deliver 220 new homes within a design framework that is based on sustainable and biodiverse principles with placemaking at its heart.”