Planned Parenthood and the ACLU are celebrating the judge's decision, but anti-abortion groups are urging the state to appeal the ruling.
A judge granted the preliminary injunction sought by Planned Parenthood of Indiana and Kentucky. The law was to set to take effect Friday.
Planned Parenthood and the American Civil Liberties Union of Indiana sued the state in April.
The federal judge indicated a ruling will come before the law takes effect July 1st.
Planned Parenthood of Indiana and Kentucky sued the state in April, calling the law unconstitutional and seeking to prevent it from taking effect July 1.
Planned Parenthood and the ACLU are suing the state over a bill passed this year, which bans abortions based on race, sex, and disability.
Known as House Enrolled Act 1337, the law bans abortions because of a fetus's gender, race or genetic disability, such as Down syndrome.
Rather than restricting the abortion providers, the ACLU says Indiana’s law criminalizes certain reasons a woman might get an abortion.
Federal courts have struck down two other Indiana anti-abortion laws in the past five years.
The state claims a clinic in Louisville was performing illegal abortions.