One day before leaving office, Corzine also signed legislation to change New Jersey's higher education system, The (Newark, N.J.) Star-Ledger reported.
The medical pot bill makes New Jersey the 14th state to permit the use of marijuana in medical treatment.
Corzine, a Democrat, leaves office as Gov.-elect Chris Christie, a Republican takes office Tuesday.
"I have enormous gratitude to the people of New Jersey for this decade of opportunity to serve," Corzine said in a statement Monday.
Before being elected governor, Corzine served as U.S. senator from New Jersey.
The "Compassionate Use Medical Marijuana" bill is scheduled to take effect in six months. Its backers said during the legislative debate it would be the toughest medical marijuana law in the United States.
New Jersey residents would not be permitted to cultivate their own marijuana and criminal background checks would be required for designated care givers to acquire pot on behalf of severely ill patients.