A judge set bail at $75,000 and Murray was ordered to stop administering sedatives in his medical practice.
"I don't want you sedating people," Judge Keith Schwartz told Murray who will be permitted to continue practicing cardiology and write some prescriptions.
Murray, 56, has been in Los Angeles for the past two weeks, meeting with his defense team and waiting for the District Attorney to formally charge him.
Earlier this month, Murray hired J. Michael Flanagan, an L.A.-based defense attorney, who is reportedly the only attorney in California to have ever won an acquittal on an involuntary manslaughter case involving propofol.
In 2004, Flanagan successfully defended a nurse, Amy Brunner, accused and ultimately acquitted of involuntary manslaughter.
Brunner was accused of leaving a syringe full of propofol out for another nurse to administer to an 80-year-old cancer patient who died within minutes of receiving the shot.
"I'm probably the only attorney in town that has successfully tried a propofol case involving death," Flanagan told TMZ earlier this month.
According to police reports, Murray found Jackson dead in the singer's Los Angeles rental home before administering cardiopulmonary resuscitation and requesting that a Jackson employee call 911.
The coroner also cited the powerful sedative benzodiazepine as contributing to the singer's death. A toxicology screen and search of Jackson's home found several other drugs in the singer's body and bedroom.
ABC News' Jim Vojtech and Kaitlyn Folmer contributed to this report from Los Angeles.