Lindsay Lohan is not being charged in connection with an alleged fight at a nightclub in New York last November.
Lawyer Mark Heller said the actress would face no formal charges after prosecutors were unable to gather sufficient evidence to prove the case.
"She's totally clear and exonerated. She has nothing but smooth sailing ahead," he said.
Lohan last appeared in court in Los Angeles on MondayA spokeswoman for Manhattan District Attorney Cyrus Vance declined to comment.
Lohan, 26, was arrested on November 29 on a charge of misdemeanour assault after an encounter with a woman at the Avenue club in New York's trendy Meatpacking District.
Lohan's accuser, Tiffany Mitchell, was "disappointed" that the District Attorney's office had decided not to prosecute, said her lawyer, Gloria Allred.
"Ms Mitchell is considering all of her legal options in the civil justice system because of what she suffered that night," she said.
The DA's decision was welcome news for Liz & Dick star Lohan, who accepted a plea deal on Monday in a car crash case in California.
She had been accused of lying to the police about who had been driving her Porsche when it was in collision with a dumper truck and violating the terms of her probation.
The Mean Girls actress was sentenced to five days in prison, but that time will be served in a locked-down rehabilitation facility rather than a jail.
The plea deal also includes 90 days in rehab, 30 days of community labour, 18 months of psychological counselling, a fine and restitution.
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