At a hearing of the disciplinary panel, which lasted about 45 minutes, the champion jockey had his suspension reduced to one day (Thursday) and he also had his £450 deposit returned.
He was handed the two days July 31 and August 1 by the stewards at Ayr last Monday after they judged him guilty of careless riding on Princely Venture, winner of the Daily Record Scottish Derby.
Fallon will now miss the Lady O Goodwood Cup on Thursday but will be available for the the William Hill Mile at the Sussex track the following day.
Later, Fallon was out of luck in the first three races at Glorious Goodwood, but it all came good for the champion jockey when he booted Carrizo Creek (5-1) to a half-length success over Old Deuteronomy in the Group Two Four Star Richmond Stakes.
The recent Curragh winner is trained by Brian Meehan, who said: "He's a very, very good horse, as he showed at the Curragh last time out.
"I don't want to sound overconfident, but he toyed with his rivals today.
"He's entered in the Gimcrack and the Middle Park."
Mark Johnson's rich vein of form continued with Darasim's comfortable all-the-way success in the ladbrokes.com Prestige Stakes.
Nayyir came back from the brink of death to give Gerard Butler's Blewbury yard a welcome boost when repeating last year's success in the Group Two Lennox Stakes .
The Indian Ridge gelding survived a horrendous time in Hong Kong late last year when he contracted the life-threatening illness colitis.
"This poor guy nearly died on us," said Butler of his 6-1 winner.