Craig will serve at least half of the ban, which began on September 9, with the remaining six months to be suspended if the player met conduct requirements, a Hockey Australia statement said.
The 29-year-old was released without charge, but was given a warning by a judge after French police detained him for allegedly trying to buy cocaine in Paris days after Australia lost their hockey quarter-final at the Games.
"Craig is required to complete mandatory training and education programs as part of his sanction," said the statement.
"Tom has had access to all of the athlete support services under our program and he will continue to do so throughout his suspension. His welfare remains our priority."
Craig will be eligible for the 2025 Australia squad, which will be announced at the end of the year.
Craig admitted he had "made a terrible mistake" following his release from custody and apologised to his family, friends, team-mates and the Australia Olympic team.
"I have embarrassed you all and am truly sorry," he said.
Anna Meares, the Chef de Mission of the Australian team in Paris, said Craig was "a good person who made a bad decision".
Craig made his international debut in 2014 and has played more than 100 times for Australia. He was part of the silver medal-winning team at the Tokyo Olympics three years ago.
He scored a hat-trick against England at the 2018 World Cup in India to help Australia to the bronze medal.
