Prabha, the 12-year-old daughter of forest brigand Veerappan, will be able to continue her studies at the St Joseph's Matriculation Higher Secondary School in Cuddalore, Tamil Nadu.
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She denied reports that the school had considered throwing Prabha out after she attended her father's funeral on Wednesday.
Veerappan was gunned down by a Special Task Force of the Tamil Nadu police near Dharmapuri on Monday night.
"The [school] management is aware that Prabha was in no way connected with the actions of her father and the institution would not take any punitive action against her," Sister Epiphany said.
Prabha, the second daughter of Veerappan, was admitted to the school in 2002 by a Chennai-based advocate and her mother Muthulakshmi.