Uruguay approved the recreational usage of marijuana five years ago and nine USA states and the capital Washington have done so too, but Canada will be the first Group of Seven country to take the step.
Among the other Senate amendments rejected by the government was one that would have prohibited any marijuana-branded swag, such as T-shirts and ball caps.
Prime Minister Justin Trudeau's government had hoped to make cannabis legal by July 1.
The country's marijuana marketplace is expected to open for business in September.
In the neighbouring United States, nine states and the District of Columbia have legalised marijuana.
"We recognize that anyone who is now purchasing marijuana is participating in illegal activity that is funding criminal organizations and street gangs", he said in January. Tony Dean, who sponsored the bill in the Senate, told the Canadian Broadcasting Corporation.
It means that Canadians can now legally grow up to four plants in their own household, and carry up to 30 grams of dried cannabis for personal use.
He said it also violates the spirit of the legislation legalizing cannabis, which restricts advertising related to marijuana.
The most controversial aspect of Canada's move to legalize marijuana nationwide has been setting the minimum age for use at 18 or 19, depending on the province. It is also permitted in several USA states.
Justice Minister Jody Wilson-Raybould tweeted that it was a "historic milestone for progressive policy in Canada as we shift our approach to cannabis". "The end of 90 years of prohibition".
"I think it's bad that the priority of the Liberal government is, after rushing this thing through, to fundraise off the backs of the legalization of marijuana instead of addressing the very serious concerns that were raised about how slow they've been with public education, about workplace safety, about the traffic death potential", she said. "A fearless move on the part of the government".
He continued, "Now we can start to tackle some of the harms of cannabis". It has been estimated that the legal sale of the drug could eventually be worth up to C$7 billion annually. "These are good things for Canada".
"And therefore we do not want to encourage in any way people to engage in that behaviour until the law is changed".
The news was also greeted with enthusiasm by marijuana advocates in the U.S. Don Hartleben, who manages Dank of America, a retail cannabis store just south of the border in Blaine, Washington, said Canada's legalization was not only politically exciting, but a potential business boon for him.