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The ruling removed a temporary injunction that halted work on the project.
The tribe had asked the U.S Court of Appeals for the District of Columbia Circuit to continue work stoppage on the pipeline within 20 miles of Lake Oahe in North Dakota. The court earlier ordered work to stop while it considered the motion.
In a statement, Standing Rock Sioux Tribe Chairman Dave Archambault II said that the tribe "is not backing down from this fight."
"We will not rest until our lands, people, waters and sacred places are permanently protected from this destructive pipeline," Archambault said.
Owned by Dallas-based Energy Transfer Partners, the $3.8 billion, 1,172-mile project would carry nearly a half-million barrels of crude oil daily from North Dakota's oil fields through South Dakota and Iowa to an existing pipeline in Patoka, Illinois, where shippers can access Midwest and Gulf Coast markets.
The company did not immediately return an email Sunday seeking comment on the court's decision.
The pipeline passes near Standing Rock Sioux reservation land that straddles the North Dakota-South Dakota border. The tribe's protest encampment near the confluence of the Missouri and Cannonball rivers has swelled to thousands at times as demonstrators from around the country joined their cause.
Tribal and state officials also are at odds over whether sacred sites were destroyed while digging the pipeline corridor. The state archaeologist has said an inspection found no sign that the area contained human remains or cultural artifacts.
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