The England defender is suspended for the final at the Allianz Arena on May 19 following his red card against Barcelona in Tuesday's semi-final second leg at Camp Nou.
Terry was dismissed in the first half of the 2-2 draw that gave Chelsea a 3-2 aggregate victory when kneeing Alexis Sanchez in the back.
However, despite having to watch the match from the stands, UEFA confirmed on Thursday afternoon that Terry would be able to join in with any post-match celebrations.
A statement read: "If Chelsea win the 2012 UEFA Champions League final, John Terry will be allowed to lift the trophy and collect the medal."
"It does look bad on the replay," Terry said on Tuesday night. "I raised my knee but hopefully the people out there who know me, know I'm not that kind of player.
"At the time I was bewildered, but looking at the replay it looks a red card. On a personal note, of course (it hurts I miss the final), but we deserve to be in the Champions League final. I really hope that doesn't take away from this win."
UEFA's control and disciplinary body will decide the length of Terry's suspension on May 31. European football's governing body have the power to extend the punishment, which would apply to next season's European Super Cup and possibly early Champions League or Europa League matches.
Branislav Ivanovic, Ramires and Raul Meireles are also suspended having received yellow cards in the second leg in Barcelona.
Bayern Munich are without David Alaba, Luiz Gustavo and Holger Badstuber due to suspension, although FIFPro, the international players' union, has asked UEFA to consider allowing the six yellow carded players to appear in the final.