Shops, colleges, private offices, commercial and other business establishments such as banks and petrol pumps opened after remaining closed for five days.
However, some private schools remained closed due to uncertainty about the situation.
The roads and markets of the city and elsewhere in the valley were also bustling with activity as private and public transport plied after five days.
The Dastageer Sahib Shrine was gutted in a fire incident leading to a spontaneous shutdown and clashes between youth and policemen in parts of the old city. Over 50 persons, including 11 cops were injured in the clashes.
Last Tuesday separatist groups called for a one-day strike to mourn the destruction of the shrine, while authorities had imposed indefinite curfew-like restrictions in six police station areas of the old city - Safakadal, Rainwari, Maharaj Gunj, Nowhatta, Khanyar and Kralkhud - as a precautionary measure.
The restrictions were lifted this morning and the residents of the area moved out of their houses for the first time in over 100 hours.
Jammu and Kashmir's Grand Mufti Mohammad Bashiruddin Ahmad had also called for a two-day strike on Thursday and Friday resulting in complete shutdown across the valley.