Phase 3 includes the start of indoor dining at 50% capacity for restaurants, with tables at least 6 feet apart.
Employees will be expected to wear masks at all times, and customers will have to wear them until they're sitting down.
The hope is to keep the infection and hospitalization numbers down while allowing the restaurants the ability to survive.
"Right now the data keeps saying that we're doing right," said Mayor de Blasio. "But I think the important part is to constantly provide education, to constantly provide the free face coverings to keep people tight and disciplined, because we're not out of the woods."
Personal care will also return with the reopening of nail salons, massage, spas, tanning, tattoo and piercing, and waxing.
The mayor said that 50,000 more workers are expected to return to the city.
Also in Phase 3, outdoor recreation like basketball, tennis, volleyball, handball and soccer can resume as the city reinstalls nets and goals at city-run facilities.
Dog runs will be allowed to reopen, and bocce games can resume as well.
When it comes to team sports like basketball, the city is still recommending only individual or distant group training.
There will be park ambassadors to hand out mask and educate the crowds.
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