The trial will be the first test of how Zantac cancer claims will fare before a jury.
GSK said in a statement it disagreed with the ruling and would defend the case at trial.
Originally marketed by a forerunner of GSK, it was later sold successively to Pfizer (PFE.N), Boehringer Ingelheim and finally Sanofi (SASY.PA).
While NDMA is found in low levels in food and water, it is known to cause cancer in larger amounts.
Analysts said it was not surprising that Grillo ruled differently from the federal court because California's courts are known to be friendlier to plaintiffs.