Paul had been in the league's health and safety protocols since June 16 and missed the first two games of the Western Conference finals against the Clippers.
Phoenix leads the series 2-0. Game 3 is Thursday night in Los Angeles.
Before being sidelined, the 36-year-old Paul had averaged 25.5 points on 62.7% shooting while dishing out 41 assists against five turnovers in a four-game sweep of the Denver Nuggets in the second round.
Meanwhile, Clippers star Kawhi Leonard has been ruled out for Thursday's game. He hasn't played since June 14 because of a sprained right knee.