Enjoying each other's company in Australia the last several weeks, Kate Hudson, 27, and Owen Wilson, 38, shared bike rides and walks on the beach. Now that they're back in the States, they're not letting jet lag cool their romance. On March 30 the previously low-profile couple were anything but shy over lunch at Santa Monica's Ivy at the Shore restaurant. "From the second they walked in, they were all over each other," says a witness. "Kate even [sat] on his lap to give him kisses." The pair's new openness reflects a "natural progression" in the relationship, says a friend. (Hudson, mom to 3-year-old Ryder, split with husband Chris Robinson last August.) Now the romance even has the Wilson family seal of approval. "He seems very happy," says Owen's younger brother Luke. "[Kate] is a very nice girl." And a keeper. "Owen has realized what a great thing he has," says the couple's friend. "They're having fun, but things are definitely getting more serious."
For up-to-the-minute news, photos and more on Kate, go to PEOPLE.COM/KATE_HUDSON.
Kate & Owen, the Real Deal
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