The country singer, who is father to Hannah Montana star Miley Cyrus, said in an interview on The View that he would not be proceeding with his legal separation.
"I've dropped the divorce. I want to put my family back together… Things are the best they've ever been," Billy Ray said.
He added: "I feel like I got my Miley back. I feel like we're the daddy and daughter we were before Hannah Montana."
Billy Ray had previously blasted the Disney show for damaging his family.
The interview will be aired on Friday March 18.