Paris Hilton has called it quits on her feud with former friend Lindsay Lohan and has decided to make up with her.

The pair famously fell out after Lohan dated Hilton's ex Stavros Niarchos, which led to a battle of words in which Paris called Lindsay a "firecrotch".

But both ladies were seen partying together on Malibu beach during 4th July celebrations.

A source told the New York Daily News that Paris has decided to give the Mean Girls actress a second chance.

They said: "Paris was known as a bully...If a friend didn't like Lohan, then she wouldn't like Lohan. But she's through taking sides. She realized who real friends were when she was in jail -- and there weren't many."