A bench of justices Sanjiv Khanna and Ashutosh Kumar said Khokhar will remain on bail for 10 days from the date of his release and listed the matter for further hearing on May 12.
Khokhar said in his bail plea that his son's marriage is scheduled to take place on April 30.
The bench granted him bail on the basis of a medical report submitted by Tihar jail authorities pursuant to the court's earlier directions.
The court had on that day refused to grant bail to co-convict Girdhari Lal.
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Khokhar was held guilty, along with four others, in a case related to the murder of five members of a family in Raj Nagar area of Delhi Cantonment on November 1, 1984, a day after the assassination of the then Prime Minister Indira Gandhi.
The ex-councillor has also challenged his conviction and award of life sentence by the trial court in May 2013.
The court had also awarded three years imprisonment to two others - former MLA Mahender Yadav and Kishan Khokhar.
The high court had in September 2013 denied bail to Bhagmal.
The convicts have filed their appeals before the High Court while Central Bureau of Investigation (CBI) also filed its appeal demanding death sentence for the trio, saying they were engaged in "a planned communal riot" and "religious cleansing".