The text passed by the assembly grants the government of the tiny Mediterranean isle the power to limit the entry of "all types of motor vehicles" to prevent it from becoming choked by fumes and overrun during summer months.
It also allows Menorca to set a "maximum ceiling" for the number of vehicles that can circulate on the island's roads during a "defined period".
Menorca, one of the most popular destinations for British holidaymakers in Spain, has so far not specified what limit it might set on the number of cars allowed.
During the peak summer season tens of thousands of cars arrive on ferries from mainland Spain or the neighbouring island of Mallorca.
"This is a historical milestone for Menorca," the head of the island's government, Susana Mora, said in a statement. "It is a tool that should help us boost our sustainability policies."
Protecting the environment and keeping tourism at sustainable levels have long been priorities for Menorca, which has been a UNESCO Biosphere Reserve since 1993 and is home to around 100,000 people.
The easternmost of the Balearic Islands, it remains distinctly rural with rolling fields, wooded ravines and humpy hills punctuated by dozens of pristine beaches.
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