The town board of commissioners said it still plans to move forward while incorporating "a variety of COVID-19 mitigation measures."
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The board said the decision came after "overwhelming support from the community to continue."
North Carolina hit record highs for single-day increases in COVID-19 deaths and hospitalizations on Wednesday. The Department of Health and Human Services also reported what might be the highest percent positive rate of all time -- 11.4 percent.
The parade is scheduled for Dec. 5. It will start at 10 a.m.
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People with COVID-19 symptoms or those who are high-risk or live with someone who is high-risk are asked to stay at home.
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People who attend the parade are being asked to social distance and wear a face covering.
"To those with continued reservations we would like to share that - when using the standards established in our governor's executive orders regarding the square-foot-per-person limits for retail stores - the "capacity" of our 18.2-acre parade route would be over five times the population of Youngsville," the board said. "Thus, we're confident that when parade goers observe physical distancing and spread-out along the parade route (along with observing all other guidelines), we will have a safe and successful parade."
The governor's current order limits outdoor gatherings to 50.
The town did not say whether attendance would be limited.