The Mean Girls star was given the all clear from Los Angeles County Superior Court Judge Stephanie Sautner during her final progress hearing on Thursday (29Mar12).
Lohan won the judge's approval after successfully fulfilling the 120 hours of community service and counselling sessions she had been ordered to complete following a 2011 necklace theft conviction, when she was already on probation for her 2007 incident.
The embattled star had previously been threatened with 270 days behind bars if she violated her probation again, but the suspended jail term was dismissed on Thursday.
Judge Sautner said, "She has done everything this court has asked of her."
However, Lohan was warned to remain on her best behaviour as she is still on probation for last year's (11) theft, and will remain so until May, 2014.
Expressing some sympathy to the star over the permanent paparazzi presence, Judge Sautner told her, "Obey all rules. It's not that hard. I know that it can be hard when people are following you about the place, but that's the life you chose.
"Stop nightclubbing and focus on your work... You don't need to come to court anymore... I don't expect to see you again."
Lohan then thanked the judge, saying, "I just wanna say thank you for being fair. What you've done has really opened a lot of doors for me and I really appreciate it."
After the hearing was brought to a close, Lohan hugged her lawyer, Shawn Holley, and gasped, 'Oh my god."
The actress has recently been working on getting her career back on track and this week (begs26Mar12) was confirmed to make a guest appearance on the current season finale of hit TV comedy Glee.
Lohan has also been granted a work permit to head to Toronto, Canada, where she will soon begin filming a TV biopic as Dame Elizabeth Taylor, based on the late Hollywood legend's love affair with Richard Burton.