Happies Close in West Wemyss, was found to be falling apart in 2018.
It was screened off from the public, but continued to be in a dangerous state.
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The council assessed it and found that the wall – estimated to be 150 to 200 years old – it was causing a risk to residents and coastal walkers.
At Levenmouth area committee, it was agreed that up to £15,000 be put towards its repair.
The total cost is expected to come in at around £25,000.
Councillor David Graham said: “Having worked with the local residents on this issue for a while now I’m delighted to see the resources approved to have the wall reconstructed.