Authorities said the 24-year-old was booked shortly after 5 a.m. and sent home to begin her 35 days of house arrest. The actress is accused of taking a $2,500 necklace from a Venice jeweler, Kamofie & Co., while she was on probation for a DUI conviction from 2007.
Lohan was originally sentenced to 120 days in jail after pleading no contest to a misdemeanor charge in the necklace theft case.
However, her sentence was reduced to 35 days under home confinement due to jail overcrowding. The sheriff's department estimated her release date to be around June 29.
Lohan was fitted with an ankle monitoring bracelet and released.
L.A. County Sheriff's Department spokesperson Steve Whitmore described Thursday morning's process as an "over-the-counter" booking, and said there was no booking photo taken.
On top of the house arrest, a judge also sentenced Lohan to complete 480 hours of community service -- 360 hours of service at the Downtown Women's Center and 120 hours of service at the L.A. County Morgue.
Lohan cannot complete her community service hours while she is under house arrest, as the judge considers that to be double dipping. She is to continue her community service sentence following the completion of her home confinement, but she needs to complete her duties within one year of when she was sentenced, which will be May 2012.
Lohan's legal troubles date back to a pair of DUI arrests in May 2007 and July 2007.
The "Mean Girls" star spent 13 days in a Los Angeles County jail last summer for violating her probation in the DUI case by missing multiple classes in a court-ordered alcohol education program.
Lohan is set to return to court for a progress report on July 21.