"The ban on covering the face in public places cannot constrain the practice of religious freedom in places of worship that are open to the public," the council said in its judgement, noting that it "conforms" with the constitution.
Expected to come into force about a half a year from now, the law provides for a six-month period to explain to a women wearing such a veil that they face a fine or arrest. If they continue to wear it, they will be fined €150 or must take a course in citizenship.
Anyone forcing a woman to wear the veil could be fined €30,000 and one year in jail.
The text of the law does not make explicit reference to Islam or the Islamic veil but was widely promoted by French politicians, including president Nicolas Sarkozy, as a way of protecting women's rights.
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