Mexico's Supreme Court has given the green light to growing marijuana for recreational use in a landmark decision that could lead to legalisation in a country with a bloody history of conflict with drug cartels.

Supporters of reform sparked up joints to hail the court's decision, which, while not legalising use of marijuana, is one of the boldest steps ever taken in that direction in a country long reluctant to liberalise drug laws.

"We've seen how drug policy and prohibition have only helped drug traffickers rake in money and commit terrible crimes to control drug markets," said 27-year-old Meliton Gonzalez, one activist celebrating outside the court.

Four more consecutive decisions of the same kind and the court's ruling would become jurisprudence, setting a legal precedent in Mexico, which has suffered well over 100,000 deaths due to drug-related crime over the past decade.