Judge William Ehrcke set bail at $7.5 million and imposed several conditions on Meng.
The courtroom erupted in applause when the decision was announced.
Meng, 46, is requesting bail on grounds that she is in poor health and has close ties to Vancouver.
She was ordered to reappear in court on February 6.
Huawei, the world's largest supplier of telecommunications network equipment and second-biggest maker of smartphones, is at the cutting edge of fifth-generation (5G) mobile network technology.
He said the ICG was not registered in China as a non-government organisation and Kovrig could have broken Chinese law.
Beijing has demanded Meng's immediate release and threatened "consequences" for Canada.
Her arrest has infuriated China, calling it "extremely bad".
The former diplomat once served in Beijing but was there on unpaid leave.
"China will never sit idly by and ignore any bullying that violates the legitimate rights and interests of Chinese citizens", Foreign Minister Wang Yi said on Tuesday, just before the chief financial officer of Chinese tech giant Huawei was granted bail in Canada.
Beijing has expressed outrage over Meng's detention in Vancouver, ratcheting up tensions in the US-China trade dispute.
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Pat Roberts of Kansas, a former chair of the Senate Intelligence Committee, also voted no on advancing the resolution . The U.S. has slapped sanctions on Saudis involved in the murder. "He murdered him.
"The idea that there is retaliation against a Canadian citizen, unwarranted retaliation, will make it even more hard for the Canadian government to squirm its way out of this situation that the United States has presented us with, " he said by phone from Ottawa.
"We are doing everything possible to secure additional information on Michael's whereabouts, as well as his prompt and safe release".
Mr Kovrig previously worked as a diplomat in Beijing, Hong Kong and at the United Nations in NY. China's party-controlled press has compared Meng's arrest to a hostage-taking and a kidnapping.
Huawei is a strategically key company for China's global high-tech ambitions but some of its services have been blocked in the US, Australia, New Zealand and Britain over security concerns.
Huawei, the biggest global supplier of network gear for phone and internet companies, is the target of USA security concerns.
He took an unpaid leave from the embassy because he "loves China" and wanted to continue to work in the country, the former ambassador said.
In this image made from a video taken on March 28, 2018, North East Asia senior adviser Michael Kovrig speaks during an interview in Hong Kong. "Absent any other explanation from the Chinese side, the only thing that has changed is the Huawei detention in Vancouver", Mr McGregor said.
Meng has denied the allegations through her lawyer in court, promising to fight them if she is extradited for face charges in the United States. Two unnamed sources told Reuters on Tuesday that the U.S. State Department is now mulling over whether or not to issue a travel warning for Americans citizens visiting China in any capacity.
Many were quick to suggest a link between Trump's trade negotiations and Meng's arrest in Canada, although the White House has said that the president was unaware that the CFO would be detained during his face-to-face discussions with Xi.
"My father founded Huawei and I would never do anything that would cause the company reputational damage", she said. They are talking to my people. "But they have not called me yet".