Despite rejecting the payout bid, the court reportedly recognized that the forced sterilization had violated the constitutional right of an individual to free choice.
At least 16,500 people were sterilized without their consent under the law, which targeted those with disabilities, and remained in force until 1996.
Last year, the government passed legislation offering the victims 3.2 million yen each ($29,700), an amount campaigners slammed as “failing to meet the seriousness” of the issue.
The legislation, and an apology from the prime minister, only came after victims had begun filing lawsuits in recent years over their experiences.
The Tokyo ruling came in the second such case, after a court in the northern city of Sendai rejected a compensation claim in May 2019.