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    Emma Roberts and Evan Peters Pack on PDA Following Her Arrest

    Emma Roberts, Evan Peters PacificCoastNews.com

    Emma Roberts and Evan Peters have apparently made up.

    After making headlines earlier this month when Canadian authorities briefly arrested her after an alleged domestic dispute, Julia Roberts' niece and her boyfriend were snapped out in public last Friday sharing an affectionate embrace on the New Orleans set of American Horror Story. 

    The 26-year-old Peters put his arm around the 22-year-old Roberts as they strolled to lunch during a break from shooting.

    No doubt whatever "unfortunate incident and misunderstanding" the duo had, as they said in their statement, has been forgotten.

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    On July 7, Roberts came under the media glare when Montreal police received a report that a couple was fighting in a hotel room and found Peters with a bloody nose and possible bite mark. After taking witness statements, officers took the actress into custody, but after questioning her, no charges were filed and she was released a short time later.

    The domestic drama didn't end there. Ten days later, Emma was photographed bawling in a NOLA parking lot while Evans tried to comfort and hug her.

    Evan Peters, Emma Roberts PacificCoastNews.com

    Since then, however, things look to have taken a turn for the better for the lovebirds.

    Last week, her dad, actor Eric Robertstold E! News at the L.A. premiere of Blue Jasmine that Roberts is "good," though her stepmom, Eliza, admitted about the alleged hotel altercation, "We don't really know anything."

    WATCH: Emma Roberts stands up for another woman

    After appearing in the 2013 indie flick Adult World meanwhile, Emma and Evan are currently filming an arc for American Horror: Coven, the third season of FX's hit horror anthology.

    Roberts will next be seen on the big screen in the upcoming comedy We're the Millers, about a drug dealer who hires a stripper and two local kids to be his fake family so he can smuggle drugs across the Mexican border. That film, which costars Jason Sudeikis and Jennifer Aniston, hits theaters Aug. 7.

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