Chand, 20, set a time of 11.30 seconds in the 100m heats at the G Kosanov Memorial Meet in Almaty, Kazakhstan.
She was prevented from competing in 2014 for failing a hormone test under the IAAF's rules on hyperandrogenism, a condition which produces higher than normal testosterone levels in women.
Chand successfully appealed to the Court of Arbitration for Sport, who suspended the regulations for two years to allow the IAAF to gather evidence as to whether athletes with hyperandrogenism do gain any performance advantage.
"I am really happy," she said.
"It has been a tough year and I am so happy that my hard work has paid off. I would like to thank all the people in India who were praying for me to qualify. Your wishes have paid off," she added.
Chand's battle against the International Association of Athletics Federation's (IAAF) hyperandrogenism rules came five years after South African athlete Caster Semenya was subject to gender tests.
Indian sprinter Dutee Chand has qualified for the 100m event at Rio 2016 a year after winning her battle against suspension over naturally occurring high testosterone levels.