The Anti-Defamation League (ADL) has "accepted Macklemore at his word" that a costume the rapper wore on stage was not intentionally anti-Semitic.
Following criticism, the star said he didn't mean to offend but realised the outfit could look like a "Jewish caricature".
"I respect all cultures and all people," he wrote on his website after the show in Seattle.
An ADL statement called the event "an unfortunate choice of wardrobe".
We know that Macklemore is someone who has used his platform in the past to stand up and speak out against intolerance and bigotry
In response to the Grammy-winning rapper's apology, ADL director Abe Foxman said: "We welcome Macklemore's apology for wearing a costume that, regardless of his motives, reminded many people of an anti-Semitic caricature.
"We take him at his word that he did not have any ill intent and unreservedly accept his apology.
"We know that Macklemore is someone who has used his platform in the past to stand up and speak out against intolerance and bigotry, particularly homophobia."
He explained that he randomly chose the elements of the outfit so that he could disguise himself and move freely around during the secret show.
He wrote: "Out of a negative can come a positive.
"Through this situation I've got hip to some incredible groups like the ADL and I encourage people to check the great work they, and others like them, do."
Macklemore & Ryan Lewis' 2013 album, The Heist, went to number 19 on the Official Album Chart with its lead single, Thrift Shop, the seventh best-selling single of 2013 in the UK.
Radio 1 also named the track the 65th most downloaded single of all time in the UK in the Official All-Time Download Top 100 chart.
The duo are on the line-up for this year's Reading and Leeds Festivals.
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