The White House says President Obama is removing Cuba from a list of state sponsors of terrorism.
It is being seen as a huge step in normalising relations between the two countries.
The move follows a face to face meeting between Obama and Cuban President Raul Castro at the Summit of the Americas last weekend.
Iran, Sudan and Syria are the nations which remain on America's blacklist.
Obama has said "has not provided any support for international terrorism" in the past six months. He went on to say that Cuba "has provided assurances that it will not support acts of international terrorism in the future."
The United States designated Cuba a state sponsor of terror in 1982, with the White Claiming the county had made efforts to "to promote armed revolution by organizations that used terrorism."
Relations between the two countries have been improving since Obama announced an improvement in their relationship in December of 2014.
However, White House press secretary Josh Earnest did make the point that Washington and the Cuban government still have difference.
"Our concerns over a wide range of Cuba's policies and actions fall outside the criteria that is relevant to whether to rescind Cuba's designation as a state sponsor of terrorism," he said.