Matthew and Grace Huang were arrested in January 2013 after the death of their eight-year-old daughter Gloria, who had been adopted from an orphanage in Ghana.
The couple, who are of Asian descent, were initially accused of starving to death their child to sell her organs but were later jailed for three years on the charges of parental neglect.
On Sunday the appeals court ruled the couple were not guilty and said they were free to leave Qatar, based on witnesses' accounts that Gloria was "not neglected in leading a normal life".
"This negates the charge that she was prevented from eating, a charge that the court of first instance used as a base for its initial ruling," the judge said.
The couple were released in November last year pending trial, but the court denied their request to leave the country to join their other two adopted children in the United States.
Both adoption and multiracial families are rare in Qatar, a conservative Gulf Arab emirate, and the family's supporters maintain Qatari authorities misunderstood the Huangs' situation.
In addition to imprisonment, the lower court had ordered the couple to pay a fine of USD 4,100 each and to be deported after serving their sentence.
