Immigration advocates said ICE did not have a proper warrant, and lied to detain the 29-year-old student, Elaina Aghayeva.
Columbia University student Mohsen Mahdawi, addressing supporters outside the courthouse following his release, called the judge's decision "a light of hope."
Amy Greer, one of Khalil's attorneys, said they "moved one step closer to vindicating Mr. Khalil's rights by challenging his unlawful detention."
Mohsen Mahdawi, who was arrested by ICE during his citizenship interview, was present during the hearing.
Mohsen Mahdawi's was arrested after attending his naturalization interview on Monday, his attorney told ABC News.
Columbia University activist Mahmoud Khalil appeared before an immigration judge in Louisiana on Friday who decided he can be deported.