Dr Kevin O’Sullivan applied to Scarborough Council to add an extra five bedrooms to the Peregrine House Care Home in Upgang Lane.
This week, Scarborough Council planning officers approved the plans.
The extension will be a single storey in height and the plans also include an expanded dormer window and new entrance canopy.
The application stated: “The applicants are seeking permission to extend Peregrine Care Home to create additional and improved accommodation and facilities, in response to identified demand within the local ageing population.
“The development will enable the expansion of an existing successful business and contribute to economic growth within the local area through the generation of additional directly associated jobs.”
Whitby Town Council and one member of the public objected to the scheme, with the town councillors feeling it would amount to overdevelopment of the site if permission was granted.
However, planning officers disagreed, saying the extension was “respectful of neighbouring properties”.
The Highway Authority also raised no objection to the increase in traffic and parking that would be created by the extension.