The CAS' ruling means that Neymar will now be free to face Belgian side Bruges on October 22 in the UCL.
However, as expected, he will miss the clashes against Real Madrid and Galatasaray.
CSA issues statement on Neymar
"The Sole Arbitrator partially upheld the appeal and reduced the suspension imposed by UEFA on Neymar Jr. to two (2) UEFA competition matches for which he would otherwise be eligible," CAS said in a statement.
What had Neymar done last season?
The former Barcelona forward criticized the referee and his assistants after PSG's last-16 collapse against Manchester United in March.
It was a game which he watched from the stands due to injury.
United were awarded a penalty deep into injury time after a protracted VAR decision.
Marcus Rashford scored to knock the French giants in a dramatic fashion in Paris.
This is what Neymar had posted post PSG's loss
"It's a disgrace. They get four guys who don't understand football to watch a slow motion replay in front of the TV," Neymar posted on his Instagram account after the 3-1 defeat against United.