The reality star was awoken at his Pennsylvania home in September by a naked female intruder kissing him on the lips, causing Margera to call police.
Margera later claimed to have developed a cold sore in the same spot where he had been kissed by the woman, but he has now told TMZ that he will not press charges over the incident.
Margera stressed that he only wants the alleged intruder to seek psychological help.
The unnamed woman had been facing potential trespassing, burglary and stalking for illegally entering Margera's home.
Margera is best known for his work in Jackass and for his own series Viva la Bam.