The 'Roll Up' rapper was arrested in November 2010 after performing at East Carolina University in Greenville, North Carolina when police found two ounces of the illegal substance on his tour bus.
Khalifa, born Cameron Jibril Thomaz, was originally charged with trafficking marijuana, maintaining a place for sale of marijuana and possession of drug paraphernalia, but the case was dismissed last month after District Attorney Clark Everett revealed that Khalifa did not surpass the ten-pound trafficking threshold.
Khalifa and three members of his entourage were cleared of all charges after pleading guilty to misdemeanour marijuana possession and paying a $1,000 fine each as well as associated court costs, reports The Reflector.
"Certainly, he regrets the position in which he found himself. He had to pay a high price for that, in a lot of ways. Khalifa's preferences and musical expression existed before his appearance in Greenville. Marijuana is a large part of his persona," said Khalifa's attorney Mark Owens III.
"I find it ironic that East Carolina knowingly asked him to come and then chose to take their actions, justified or not under the law. If you have a problem with cholesterol and high blood pressure, you don't ask [a barbecue restaurant] to cater your lunch."
Khalifa previously confessed that he was prepared for the arrest as his public persona makes him a bigger target for police.
Watch Wiz Khalifa's video for 'Roll Up' below: