Yesterday, the actress was remanded in custody by Judge Elden Fox.
However, her lawyer Shawn Chapman Holley filed an appeal, claiming that Lohan had been treated 'harshly' and that there was a legal precedent for bail to be granted.
Judge Patricia Schnegg heard the appeal and agreed for to release the 24-year-old on £300,000 bail.
Lohan has since left the Lynwood, California women's prison. According to TMZ, she will again be required to wear a SCRAM alcohol monitoring device, and must agree to be searched by police at any time.
A further hearing relating to Lohan's failed drug tests will take place on October 22.