Concerns had been raised about the booth in Ladybank which is one of the K6 kiosks designed in 1936 to commemorate the Silver Jubilee of King George V's coronation.
Local politicians, Willie Rennie MSP and Wendy Chamberlain MP met with members of Ladybank Community Council this week to welcome BT's continued commitment to maintaining the working phone box in Commercial Road, following a fresh coat of paint.
It is considered by the community to be an important part of the local street scene.
After questions were raised about its future, the Lib Dem politicians met with representatives of BT who agreed to maintain the booth and keep the payphone in working order.
Kevin McDaid, who chairs the community council said: "The telephone box is part of our community and is a focal point for visitors and locals alike.
"BT has honoured its commitment to keep it as a working telephone and done a great job bringing it back to life with a fresh coat of paint, including the gold crowns on top.”
Mr Rennie welcomed the news.
He said: “The telephone box looks great. It has been there for as long as I can remember and it really is part of the village's heritage.
"Many in-community services have come under threat in recent years and our town and village centres are in danger of losing their character and appeal.
I'm very pleased that BT has kept up its promise and done good work here.”