The Islamabad High Court said anti-terrorism court Judge Kausar Abbas Zaidi could conduct 69-year-old Musharraf's trial at his farmhouse in the suburb of Chak Shahzad.
The court gave its ruling after its Registrar and Zaidi reviewed security arrangements at the farmhouse.
The anti-terrorism court is hearing a case against Musharraf for detaining dozens of members of the superior judiciary after imposing emergency rule in 2007.
Islamabad had no anti-terrorism courts till recently and the court was created specifically for Musharraf's trial.
Zaidi also informed the Islamabad High Court in writing about his security concerns.
Zaidi had sought the establishment of a courtroom within Musharraf's farmhouse and a bulletproof vehicle for his personal use due to security concerns associated with the high-profile case.
Reports said the administration of Islamabad had set up the courtroom and asked the Cabinet Division to provide a bulletproof car to the judge.
The anti-terrorism court is currently located in the congested district and sessions court complex in Islamabad.
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