The girl took action after Britain's "strictest" school prohibited the practice when students started kneeling on their blazers in the playground.
But the judge ruled Michaela Community School's ban was not discriminatory but was "proportionate".
Struggle
Katharine Birbalsingh, founder and headteacher of the high-achieving North London school, praised the decision as a "victory for all schools".
Esther McVey, minister for common sense, was also delighted, saying: "Hallelujah, praise the Lord....from time to time we all struggle to understand decisions made in the courts. Thankfully, this one is a victory for common sense which will allow Michaela to continue doing what it does better than anyone else." The Prime Minister's spokesman said: "We welcome this judgment.
"The Michaela Community School is an outstanding school with a history in excelling in its outcomes for all pupils, who are regularly from some of the most disadvantaged parts of London."
Ms Birbalsingh claimed the family's legally aided court action would cost the taxpayer £150,000.
She said: "A school should be free to do what is right for the pupils it serves. The court's decision is therefore a victory for all schools.
"Schools should not be forced by one child and her mother to change its approach simply because they have decided they don't like something at the school."
Around half of Michaela's 700 pupils are Muslim and the school embraces "traditional values" where "children are happy and are friends with each other across racial and religious divides".
Ms Birbalsingh said people are told about its rules before pupils join, adding: "If parents do not like what Michaela is, they do not need to send their children to us. Can it be right for a family to receive £150,000 of taxpayer-funded legal aid to bring a case like this?"
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