NASCAR has officially reinstated Kyle Larson after his infamous N-word incident -- clearing the way for the 28-year-old to race again in 2021 ... but there are a BUNCH of catches.
Remember, Larson was fired by the Chip Ganassi Racing team and dropped by his sponsors after he called a teammate the n-word during a virtual race back in April -- not realizing his audio was streaming out to thousands of people on Twitch.
NASCAR suspended Larson indefinitely at the time while it figured out how to handle the situation.