Rachel Canning appeared in court to testify that she voluntarily wished to dismiss the complaint. Her parents were also present and the family left court together.
Attorneys for both parties declined to comment.
Canning grabbed national headlines after she filed a lawsuit against her parents, asking for financial support after moving out of her home on Oct. 30, two days before she turned 18. The high school student was demanding $650 a week in child support, high school and college tuition payments, and attorney fees.
She claimed her parents kicked her out, but her parents said she voluntarily left home because she didn't want to follow house rules, such as following a curfew and being respectful.
Canning alleged that her parents were abusive, contributed to her developing an eating disorder and pushed her to get a basketball scholarship. Her parents said they were supportive and paid for her to attend a private high school.
Earlier this month, a judge denied the teen's request to have her parents pay her remaining high school tuition, but delayed a decision on financial support for her college education. A court date was set for April 22.
Canning agreed to go home last week after talking with her mother. She had been staying with her best friend's family. The family's lawyer said the move was not based on financial considerations.
The Associated Press and KABC-TV contributed to this report