The ban in Villeneuve-Loubet “seriously and clearly illegally breached fundamental freedoms to come and go, freedom of beliefs and individual freedom”, it found.
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The ruling could set a precedent for up to 30 other towns that imposed bans.
The court will make a final decision on the legality of the bans later.
Correspondents in France say the court’s decision means that all the bans on burkinis are likely now to be overturned but one mayor in Corsica has already vowed to keep the ban in place on his town beach.
A human rights group, the Human Rights League (LDH), was among those who had brought the ban in Villeneuve-Loubet to the court’s attention.
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