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Nicole Richie and Rachel Zoe Hug It Out

Rachel Zoe, Nicole Richie Lisa Rose

The ice has thawed between Nicole Richie and Rachel Zoe.

The two tiny fashionistas used to work together and were BFFs...until Nicole dissed Rachel on her MySpace page.

But apparently, that's all in the past.

Get the scoop and video from the event after the jump.

Last night, Rachel hosted the Byron & Tracey salon party, where she and Nic hugged it out and chatted it up like they were best friends. Of course, cameras for her Bravo hit, The Rachel Zoe Project, were rolling for the reunion.

Other celebs who hit the stylish soiree included a supersvelte Tori Spelling with hubby Dean McDermott, Jenny McCarthy, Rose McGowan and Nicky Hilton.

It was a night of reconciliations—Nicky used the opportunity to debunk the rumors about disliking Paris' new BFF Brittany, saying they all get along.

Check out the exclusive video below from inside the posh party!

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