The court ordered the organisers "to suspend the execution of the measures adopted against the Israeli exhibiting companies whose stands were prohibited at the Euronaval 2024 exhibition until the closing date of the exhibition", the judgment said.
Israeli Foreign Minister Israel Katz hailed court verdict as a "significant victory against the unjust and undemocratic decision by the French government".
"This outcome... is a critical win for justice and a clear message against attempts to weaken Israel in its fight against forces of evil," he said on X.
In mid October, the French government told Euronaval organisers that Israeli delegations taking part in the trade fair this year, from November 4-7, would not be permitted to set up a stand of exhibit hardware, sparking outrage from Israel.
The decision came amid rising tensions between Israel and France, after President Emmanuel Macron criticised the civilian casualties in the Israeli campaigns against Shiite militant group Hezbollah in Lebanon and Palestinian militant group Hamas in the Gaza Strip.
The French leader had insisted that stopping the export of weapons used by Israel in both operations was the only way to halt the two conflicts.
A lawyer who represented the Israeli companies after they appealed the ban, Patrick Klugman, hailed Wednesday's decision as "a victory for the rule of law".
"Whatever the stated intention, from the highest level of the State to the organising company, the action which we had to take note of here was manifestly ill-founded and illegal," he said.
Euronaval is a biennial event that attracts naval defence exhibitors from around the world.
At the end of May, the presence of Israeli defence manufacturers at the Eurosatory land defence and security exhibition was banned by the government, before finally being authorised by the French courts.
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