China said India would withdraw personnel while Beijing would "continue its sovereignty rights".
India's foreign ministry confirmed its troops were "disengaging" at Doklam after agreement between the countries.
The row began in mid-June when India said it opposed a Chinese attempt to extend a border road on the plateau.
The area is known as Doklam in India and Donglang in China.
The news comes a week before a visit to China by Indian Prime Minister Narendra Modi.
The plateau, which lies at a junction between China, the north-eastern Indian state of Sikkim and the Himalayan kingdom of Bhutan, is disputed between Beijing and Bhutan. India supports Bhutan's claim over it.
What's behind the India-China border stand-off?
Why is the India-China border stand-off escalating?
China 'racist' video on India sparks fury
In the weeks that followed, both countries increased troop numbers and even engaged in several minor confrontations in the area.
Both countries also called on each other to back down, with China in particular warning of "serious consequences".
Adjunct fellow, Institute of Chinese Studies in Delhi, Atul Bhardwaj told BBC News that an agreement was the "only alternative" since a confrontation between the two Asian giants "could not have gone on".
He added that the resolution showed "India had initially given primacy to its relationship and commitments to Bhutan" but officials had clearly changed their mind.
"India needs Chinese markets and Chinese investments," he said, adding it would be interesting to see the political fallout of the decision in India, given that Delhi had said it would not back down.
India and China fought a war over the 3,500km (2,174-mile) shared border in 1962, and disputes remain unresolved in several areas, causing tensions to rise from time to time.
No comments: