The two separate schemes would see homes built on fields either side of Hatfield Lane in the north of the village, south of the A630 West Moor Link.
The proposals approved by councillors will see the fields developed with 'green wedges' - land which will be retained for leisure uses and playing fields.
But councillors raised concerns as to whether developers will stick to the proposals, and some are concerned it will cause gridlock on the roads.
Two separate schemes were approved by Doncaster Council planning committee, both of which are on land recommended as possible housing in Armthorpe Parish Council's own neighbourhood development plan.
But the scheme to the west of Hatfield Lane, for 400 houses, had been the subject to an objection from nearby Edenthorpe Parish Council.
The scheme is due to include space for a primary school, open space and children's play areas.
Edenthorpe Parish Council, which represents the area on the other side of the West Moor Link to the scheme, warned that under all the various housing plans in the area at present, there would be a total of 1,450 new homes all converging around one roundabout, where Hatfield Lane meets the West Moor Link Road. They said the area was already severely congested and the developments would cause gridlock.
They also warned that schools, GP surgeries and other amenities would be unable to cope.
The scheme to the east of Hatfield Lane is for 400 houses, plus four industrial units. It attracted 20 letters of opposition, raising concerns over traffic congestion, proximity to electricity pylons and fears that the the facilities in Armthorpe could not cope with the extra homes.
Of the scheme west of the Hatfield Lane, Coun Dave Shaw said: "If we were guaranteed it was delivered as it stands we'd be delighted - it represents one of the best schemes we've seen. My concern is it will end up as something else."
Coun Jonathan Wood said he was concerned developers would come back in the future asking to make changes.
Both schemes would involve the developers putting money into improvements to the A630. The developer of the scheme to the west of Hatfield Lane would pay £387,855, and the developer to the east would be £349,961.
Armthorpe ward Coun Chris McGuinness also addressed the meeting, after reading a suggestion that the green wedges may not be necessary in some parts of the plan because of open countryside to the north.
He said: "The community would support this only with the green wedges - that is a key part of it."
Both schemes would have 26 per cent affordable housing.