City of Wanneroo councillors approved the ground cover for part of the Lenham Park facilities after a petition from residents.
The petition, signed by 34 residents, was presented to the council in March to help prevent further injuries.
After the needle stick incident was reported, the City closed the park to rake the sand, but no other needles were found.
Cr Domenic Zappa put an amendment to the council at Tuesday night�s meeting to install the rubber soft fall around just the play equipment, leaving the swing area sand, rather than refusing it.
Cr Zappa said it was a fair and balanced response to the community�s calls and it would give them �peace of mind� when children were playing at the park.
Cr Brett Treby backed the proposal to install the rubber soft fall.