The Falcon 9, which is designed to eventually send NASA astronauts into space, was due to launch the day before, but an auto-abort was triggered one minute before take off.
However, the newly minted Block-5 edition of the Falcon was successful in its second attempt, taking off at 9.14 pm (UK time) and carrying a communications satellite for Bangladesh into orbit.
Minutes after it blasted off, the rockets main-stage booster flew back to Earth safely, landing on on an unmanned platform vessel floating in the Pacific Ocean.
The latest version of the Falcon 9 has around 100 upgrades, and includes a recoverable booster that is designed to be reused at least 10 times, allowing more frequent launches at lower cost – a key to billionaire Elon Musks business model.
Its all part of Musks plan to make space travel accessible to everyone, and eventually allow people to land on Mars.
The successful launch of the Block-5 takes the company one step closer to satisfying NASA regulations for carrying astronauts to the International Space Station.
The achievement was hailed by Bangladesh Prime Minister Sheikh Hasina in a livestream appearance from her countrys capital, Dhaka.
“Today is a very delightful and glorious day for our motherland, Bangladesh, and Bangalee nation,” she said. “With launching of Bangabandhu Satellite-1, we are hoisting our national flag in the space.”