The hearing ended a very rocky five-year period for the star. She will remain on informal probation for two more years for a January 2011 incident when Lohan was accused of stealing a $2,500 necklace from a Venice jewelry store. Superior Court Judge Stephanie Sautner reduced that probation, which means she will no longer be supervised by a probation officer and a judge and no longer be forced to live in Los Angeles.
The 25-year-old's troubles all started back in 2007 with a DUI arrest and 84 minutes of jail time. After failing to complete alcohol education in 2010, she was ordered to rehab, which was cut short. Lohan relapsed shortly after, and a judge sent her to the Betty Ford Center, where she was involved in a fight with a rehab worker.
In addition to her newfound freedom, Lohan's career appears to be on the upswing. She recently appeared on Saturday Night Live, she's said to be working on a TV movie appearing as Elizabeth Taylor, and she's also expected to guest star on an upcoming episode of "Glee."
Though her on-screen comeback looks hopeful, Lohan's legal woes are far from over. She still faces civil lawsuits over accidents and her bad behavior. Two weeks ago, a Hollywood nightclub manager accused Lohan of grazing him with her Porsche. The actress denies the accusation and no charges have been filed, but the matter may end up in a civil court, where Lohan is already being sued by two other people for auto-related incidents.
Three men who were in a car that Lohan commandeered and used for a chase along Pacific Coast Highway - leading to her second drunken driving arrest in 2007 - are suing her and the case is scheduled for trial later this year. Lohan is also being sued by a woman who claims she was struck by the star's car while walking in West Hollywood. She is also being sued by the former Betty Ford worker.
The Associated Press contributed to this report.