The International Court of Justice has ruled against issuing emergency orders to stop Germany's arms sales to Israel.
The case, brought by Nicaragua, argued that Germany had breached the UN genocide convention by sending military hardware to Israel.
The German government said the lawsuit was unjustified.
Berlin is a staunch ally of Israel and the second largest supplier of arms to the country after the US.
Israel has rejected the accusations of genocide and says its actions in Gaza are focussed on destroying Hamas.