In April 2017, Jadhav was given the death sentence by a military court.
India alleged that in violation of the Vienna Convention, the Pakistani authorities had denied India its right of consular access to Jadhav, despite repeated requests.
Relations between nuclear neighbors India and Pakistan have warmed slightly in recent days after several tense months following border skirmishes in the disputed region of Kashmir in February. The court has held that Pakistan review and reconsider Jadhav's sentence by giving him consular access.
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The case of Kulbhushan Jadhav has been a thorny issue since he was arrested in March 2016.
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Meanwhile, Pakistan's foreign office said in a statement that the country "upheld its commitment as a responsible member of the worldwide community" by appearing before the court despite a very short notice.
The ICJ, in rejecting India's demand that Pakistan's conviction of Jadhav be set aside, did call for Islamabad to review the verdict in light of the ICJ's finding that Jadhav's right to consular access had been violated.
India had repeatedly asserted that Jadhav was abducted from Iran and brought into Pakistan.
The court, in its ruling by 15-1, declared "a continued stay of execution" on Jadhav, saying it "constitutes an indispensable condition for the effective review and reconsideration of the conviction and sentence" of the accused.
Analysts say that the Kulbhushan Jadhav case is crucial to the future of relations between India and Pakistan.
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In February Pakistan's attorney general told the ICJ that Jadhav's "unlawful activities were directed at creating anarchy in Pakistan and particularly targeted the China-Pakistan corridor".
Pakistan said it detained him in the restive province of Balochistan, home to a separatist insurgency that Islamabad accuses India of backing. As the Pakistani analyst, Umair Jamal recently pointed out, ICJ verdicts involving India and Pakistan rarely if ever, come down hard on one or the other country.
The worldwide court also ordered Pakistan for "effective review and reconsideration of the conviction and sentence", according to a document on the court's website.
Welcoming the verdict of the International Court of Justice on Indian national Kulbhushan Jadhav, Prime Minister Narendra Modi on Wednesday said "truth and justice" have prevailed. On 18 May, 2017, the ICJ ordered Pakistan to halt the execution of Jadhav until a final decision was made in the proceedings.
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Second, the ICJ rules in Pakistan's favour, validating the due process followed by their military courts.