Superior Court Judge Stephanie Sautner ended the Mean Girls star's probation, which was imposed for a 2007 drink driving offence – meaning she won't have to appear in court or report to a probation officer.
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The 25-year-old remains on informal probation for taking a 2,500 dollar (£1,570) necklace without permission last year, but the immediate threat of jail or further punishment is over.
The actress had struggled for to put her two drink-driving arrests behind her and has been under constant scrutiny since she missed a court hearing in May 2010.
Judge Sautner said Lindsay had done everything that had been asked of her since late last year.
Thanking Judge Sautner for her patience, the actress smiled and let out a sigh of relief during the brief hearing.
"I just want to say thank you for being fair. It's really opened a lot of doors for me," she said.
The hearing came as Lindsay's career is showing hints of a comeback.
She is due to guest star in a forthcoming episode of Glee, recently hosted an episode of Saturday Night Live and is set to star as Elizabeth Taylor in a television movie.