On Friday afternoon, a Los Angeles judge overturned a ruling to deny the actress bail after Lohan was ordered into custody at a Lynwood, Calif., jail.
"An order has been signed by Judge Patricia Schnegg granting writ of habeas corpus," court spokesman Allan Parachini confirmed to PEOPLE. "Bail has been set at $300,000."
Habeas corpus refers to the release of an inmate due to unlawful detention. Schnegg, an assistant supervising judge of the criminal courts, cited state law that guarantees the right to bail in misdemeanor cases.
Judge Schnegg ruled, however, that Lohan must be fitted with a SCRAM alcohol-monitoring device within 24 hours if released. Schnegg made the ruling after Lohan's attorney, Shawn Chapman Holley, filed an appeal, arguing that Lohan was unlawfully denied bail.
Lohan, 24, was booked into jail on Friday morning after Beverly Hills Superior Court Judge Elden Fox ordered her to be held in custody without bail following the a positive result in her mandatory drug test.
She faces a probation violation hearing on Oct. 22.