The Disabled Persons Parking Badges Bill allows council officers to confiscate badges if they are being misused, by someone not entitled.
Lost or stolen badges can also be cancelled, preventing others from using them.
SNP MSP Dennis Robertson brought the Member's Bill which was passed by MSPs last night.
Mr Robertson said: "We need the legislation because people think it is ok to park in disabled parking spaces without a Blue Badge, or allow family members of a person with a disability using a badge.
"Denying a disabled person a parking space means they have to return home or cannot do what they planned."
Transport Minister Keith Brown backed the Bill.
He said: "Misuse of a badge is not only illegal, but should be socially unacceptable too."
Labour and the Conservatives also supported the Bill at its final stage in the parliament.
Labour Transport Spokesman Mark Griffin said: "Misuse needs to be tackled as it leads to badge holders being denied a parking space when they need it."
"The unique number on the Blue Badge will allow police or traffic wardens to check the identity of the badge holder against who is driving the car."