The blonde took the stand via satellite from New Orleans on Friday, Jan. 31, and was shown sitting next to an FBI agent.
The Brit actress was asked about the voicemail message that she left for the James Bond actor in 2005.
Miller was in a relationship with Law at the time, and reportedly told Craig: "Hi, it's me. I can't speak, I'm at the Groucho with Jude. I love you."
The 32-year-old star explained, "The thing that's been slightly misconstrued about this voicemail message is that I said 'I love you' and that this was some incredibly important declaration of love. I've always ended my calls to Daniel saying 'I love you.'"
Miller was questioned as to whether or not she was carrying on a relationship with Craig the same time that she was dating Law.
"Whether or not I was in a relationship with Daniel Craig, it was not a relationship, it was a very brief encounter, and he was my best friend," she explained to the court.
"My saying 'I love you,' whether anything romantic happened briefly or not, there was nothing significant."
This marks the first time that either of the Layer Cake actors has spoken publically about their reported affair.
But the twists didn't end there…
Another famous face shockingly became involved in the hearing: Kate Moss.
Former News of the World reporter Dan Evans claimed that he intercepted a voicemail from Craig to the model.
According to Evans, Craig said, "I love you, I love you, I love you," on the message.
The good-looking duo was rumored to have been dating for only a few months in 2004, but neither confirmed the relationship.