The Scottish government have rejected motions to keep the minimum age of changing genders to 18.
Young people aged 16 and 17 will now also be allowed to change their legal gender.
Despite Some SNP MSPs arguing that 16 is too young to make such a "profound change", the new policy will make changing genders an easier and quicker process.
Overall, the government said that lowering the age was in keeping with other rights and responsibilities people gain at 16.
What are the new reforms?
The new reforms will make it easier for trans people to obtain a Gender Recognition Certificate (GRC), which changes the gender recorded on their birth certificate.
The proposals will:
Scottish Conservatives have been accusing the government of trying to rush the reforms in the lead up to Christmas to avoid focused scrutiny on the matter.
Protestors were heard shouting "shame on you all" and "there is no democracy here" from the public gallery while MSPs voted against a move to make it harder for sex offenders to change gender.
Social Justice Secretary Shona Robison spoke and said that 16-year-olds have the right to vote in Scottish Parliament elections, leave home, and get married.
She added: "Trans rights are not in competition with women's rights", and the proposals would be a "significant step forward in creating a more equal Scotland, where trans people feel valued, included and empowered."
Those against the move have voiced their concerns about how the proposals could pose a danger to women and girls, particularly regarding the use of single-sex spaces.