The Yemeni national army announced the coastal city of Midi has been completely liberated from Iran-backed Houthi militias on Wednesday.
The army said the Yemeni national flag had been hoisted in the city, which lies in the north west of the country on the border with Saudi Arabia.
The military launched an operation to recapture Midi on Sunday, which was freed after three days of fighting.
Major General Mohammed Al Misairi, commander of the Saudi-led coalition, which includes the UAE, said the Arab forces would continue to support the national army until all of Yemen is liberated from the Houthi militia grip.
The Saudi-led coalition intervened in the war in 2015 at the request of the Yemeni President Abdrabu Mansur Hadi.
Earlier this month, the coalition sent thousands of soldiers, who had been trained in the Kingdom, to help with the liberation push.
The Yemeni army has been advancing towards the rebel-held capital Sanaa, which has been under Houthi control since the war began over three years ago.
The military recaptured several locations in Sada last month, including a rebel military base, as well as several posts in Bakem district in the north west of Yemen.
Last week, the UN urged both sides in the conflict to come to a political agreement to end the war, which has left millions in need of humanitarian assistance.
The UN's special envoy to Yemen, Martin Griffiths, was understood to have met a Houthi rebel delegation in Muscat on Saturday before meeting with officials from the Southern Transitional Council, an organisation made up of southern Yemen separatists, in Abu Dhabi on Monday.