The Anti-Terrorism Court in Islamabad issued the bail order on Monday for Musharraf, who has been detained in his farmhouse on the edge of Islamabad since April 19 on charges of conspiracy to murder two-time prime minister Bhutto, who was assassinated in a gun and bomb attack in 2007 in Rawalpindi.
Judge Habibur Rehman said Musharraf, who ruled Pakistan from 1999 to 2008 after seizing power in a coup, will have to pay two bonds worth one million rupees ($10,000) each.
The bail does not grant his automatic release as he also faces legal cases, including one over the 2006 death of a Baluch rebel leader.
Musharraf's government blamed Bhutto's killing on Pakistani Taliban chief Baitullah Mehsud, who was killed in a US drone attack in 2009.
Musharraf returned from exile in Dubai in March to stand in last week's general election, vowing to save the country from violence and economic collapse.