Paris Hilton and Lindsay Lohan hung out at the beach together last weekend, and now the sexy twosome are continuing their rekindled friendship over dinner at Giorgio Baldi in Santa Monica.

Sources from inside the restaurant stated:

“Lindsay and Paris were yucking it up just like back in the day. They both left in a great mood — like they were happy to be friends again.”

Also hanging with Lilo and Paris … Linds’ kid sister Ali and the newly single Nicky Hilton. Paris’ sis has officially broken up with her boyfriend of four years, David Katzenberg.

A source told the NY Post:

“They broke up quietly after four years together. The main reason was that they have been busy with their work schedules, and it has made it difficult to spend time together.”

Nothing a little sisterly love can’t fix!