The 25-year-old starlet's career has been sidelined in recent years by her legal woes and addictions to drugs and alcohol.
However, she has completed rehab, psychological counseling and 480 hours of community service at the county morgue as per the requirements of her felony probation, and can once again focus on her career.
The "Mean Girls" and "Freaky Friday" actress will remain on informal probation for two more years for her 2011 misdemeanor shoplifting conviction.
"The only terms on that case are to obey all laws," CNN quoted Los Angeles Superior Court Judge Stephanie Sautner as saying Thursday. "It's not that hard. ... I know it's hard when people are following you all over the place, but that's the life you chose."
Sautner also told Lohan to "live your life in a more mature way, stop the nightclubbing and focus on your work."
"I just want to say thank you for being fair," CNN reported Lohan said. "It's really opened a lot of doors for me, so I really appreciate it."
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