Wednesday's hearing was part of a routine monthly update required of the starlet from the judge to keep closer tabs on the actress and her probation terms.
At the hearing, Judge Stephanie Sautner gave the 25-year-old some positive feedback, which was rare for Lohan, who has struggled to meet the various terms of her sentences in the past, which have included jail terms, rehabilitation, community service and counseling.
"You're doing well, and I'd like to see you continue," Sautner told Lohan toward the end of the short meeting.
The "Mean Girls" star spent less than five hours in jail in November as part of a 30-day sentence imposed by Sautner for Lohan's continued misbehavior.
However, since being threatened with a long jail sentence at her last court appearance, the actress has been reporting regularly for work at the Los Angeles County Coroner's Office.
"She's been doing fine," Deputy Chief Coroner Ed Winter said Tuesday, saying the actress has been showing up, working and leaving without incident.
Lohan has worked at the morgue for 12 days since her sentencing Nov. 2 and completed five therapy sessions.
Lohan is required to complete 12 more days of community service at the morgue and also complete four more 45-minute psychotherapy sessions by Jan. 17, the date of her next progress report hearing.
Wednesday, Sautner gave Lohan an incentive to work harder, telling her that she is free to travel outside of California for personal visits once she finishes her required community service at the morgue.
Lohan returned from a trip to celebrate her sister's birthday in Hawaii hours before her court appearance. Sautner had previously said Lohan could only travel outside of the state for holidays, but excused the Hawaii trip due to a misunderstanding.
Lohan remains on probation for a 2007 drunken driving case and a misdemeanor grand theft case filed after she took a $2,500 necklace without permission in January.
Wednesday's hearing came a day before a Playboy issue featuring Lohan hits newsstands. The mostly-nude Marilyn Monroe-inspired pictures have leaked and already hit the Web.
The hearing was the first positive one the actress has had, and if she continues to abide by her probation terms, she will likely be able to put all of her probation from her DUI and shoplifting case behind her in just a few months.