Nightclubs have reopened, late-night alcohol sales have resumed, and the Danish coronavirus app is no longer needed to enter venues.
While cases are still relatively high, the authorities say the virus no longer qualifies as a "critical threat".
That is due to the country's high vaccination rate, experts say.
More than 80% of the population over the age of five have had two vaccinations and over 60% have been given a third booster dose.
"With Omicron not being a severe disease for the vaccinated, we believe it is reasonable to lift restrictions," epidemiologist Lone Simonsen of the University of Roskilde told the AFP news agency.
From Tuesday, masks are no longer required in shops, restaurants, and on public transport. Limits on the number of people allowed at indoor gatherings and social distancing measures also come to an end.
The national Covid pass app is no longer required - although individual event organisers can still choose to make it a condition of entry.