Paris Hilton and Lindsay Lohan hung out at the beach together last weekend, and now the sexy twosome are continuing their rekindled friendship over dinner at Giorgio Baldi in Santa Monica.

A source from inside the restaurant tells X17online exclusively:

    "Lindsay and Paris were yucking it up just like back in the day. They both left in a great mood -- like they were happy to be friends again."

Also hanging with Lilo and Paris ... Linds' kid sister Ali and the newly single Nicky Hilton. Paris' sis has officially broken up with her boyfriend of four years, David Katzenberg. Find out what a source had to say about Nicky's breakup ... after the jump.

See more of Lindsay, Paris and Nicky in our gallery below.