Evie Ruddy complained to the Saskatchewan Human Rights Commission after she couldn't get a cut last August.
A statement from the commission says Ruddy has reached a settlement with Ragged Ass Barbers.
The owner of the shop, Craig Zamonsky, has apologized and acknowledged it was wrong to turn the woman away.
He says the shop will provide service to anyone who wants a traditional, men's-style haircut.
Ruddy says she appreciates the apology.
"It was a difficult time for me and my friends and family to experience what it is like to face discrimination and to voice it," she says in the statement.
"I look forward to feeling safer about being who I am."