Hilary Duff

Hilary Duff & Lindsay Lohan: Mean Girls No More

04/04/2007 at 04:15 PM EDT

Hilary Duff & Lindsay Lohan: Mean Girls No More
Duff and Lohan
John Shearer/WireImage; INF

Hilary Duff

Hilary Duff

The cold war between Lindsay Lohan and Hilary Duff is finally over.

The two stars, who had a conflict dating back to 2002 when they simultaneously dated Aaron Carter, have been spotted hanging out lately. And their onetime feud, which Duff once called "silly," is all in the past.

"We are both adults and whatever happened, happened when we were young," Duff tells PEOPLE. "It's over."

In fact, the pair have been acting like bona fide BFFs recently. Last week, they were together at Hollywood club Teddy's, where they chatted, danced and, at one point, even kissed each other's hands. Later they dashed to the bathroom for a gossip session when Duff's ex Joel Madden arrived with Nicole Richie.

Lohan also showed up at the release party on Monday for Duff's new album, Dignity.

"She's really fun," says Duff of Lohan. "We were hanging out the other night and she's a nice girl."

Reporting by JENNIFER GARCIA

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