Afghan security forces regained control of Musa Qala district in southern Helmand province early on Sunday, local officials said.
A massive military operation was launched on Saturday with the help of foreign forces to flush out insurgents from the restive district.
More than 200 insurgents were killed in the operation, which included both ground strikes by Afghan forces and air strikes by foreign forces.
The operation is still underway to flush out insurgents from other parts of the district, officials informed.
Musa Qala district fell to Taliban insurgents on Wednesday following intense clashes with Afghan security forces.
Local security forces fought bravely but ran out of ammunition and were ultimately forced to retreat from the district.
Many security personnel were reportedly killed in the clashes, although the exact figure is not known.
To help local forces recapture the district, reinforcements were sent to Musa Qala from Kabul. Foreign forces also helped with surgical air strikes in which many insurgents were killed.
Security situation continues to be volatile across Afghanistan with insurgents upping the ante and launching attacks in many restive provinces.
Security forces have also intensified operations across the country.