According to the firm, the rule is now "much more than just a public health measure" after it was implemented in August 2020.
"It developed into a bedrock community policy to support our hosts and their neighbours," the San Francisco-headquartered firm said.
It also lifted a restriction on the number of people who can live at home.
Airbnb stated in a statement that complaints about parties have dropped by 44% since the first introduction of the measure.
It said that exceptions to the ban could be made in the future for "speciality or traditional hospitality venues".
Airbnb stated that it would remove any limit on how many people its listings can accommodate at once.
Because of concerns about the spread of Covid-19, it had previously set a 16-person limit.
According to the firm, "a variety of larger homes can comfortably and safely house more than 16 people" - including castles in Europe, vineyards in America, and large villas on the Caribbean's beachfront.
It stated, "Removing the cap is meant for those hosts to responsibly use the space in their homes while still complying with our ban on disruptive parties."
In 2019, the company began imposing restrictions on parties. The company banned parties that were not open-invite and those that were nuisances to neighbours.
Airbnb imposed an indefinite ban on parties during the pandemic "in the best interests of public health".
Last year, more than 6,600 people were also banned from the platform for violating the rules.
Airbnb stated that the new policy was long-term and meant to encourage and support community safety.
It added that "We look forward to sharing updates in coming weeks and months about our efforts to supplement our community policies on Parties,"