Animal rights groups had petitioned the court after Tamil Nadu amended a law in 2017
"The Tamil Nadu law is a valid piece of legislation and there is no flaw in it," Justice Aniruddha Bose declared on behalf of a five-member bench.
During Jallikattu, people try to grab charging bulls by their sharpened horns or jump on their backs.
Organisers of the centuries-old event insist the animals suffer no harm.
They call the event an established part of Tamil culture.
Jallikattu is celebrated in January during the Tamil harvest festival, Pongal.
In 2014, the Supreme Court banned the sport, saying it inflicted "extreme cruelty" on the animals.
In 2017, the Tamil Nadu government lifted the restriction, paving the way for Jallikattu to resume across the state.