The feisty Osbourne star was pictured at Elton's 22nd Annual AIDS Foundation Academy Awards Viewing Party in Hollywood and decided to officially bury the hatchet with her former enemy Gaga in person.
But her way of making up with the songstress wasn't exactly what we would have expected.
Taking an unconventional approach, Kelly made "peace" with Gaga by pretending to choke her!
This special moment was captured on camera and swiftly uploaded to Instagram by Kelly, who wrote: "#peace at last @ladygaga."
The two ladies have exchanged a number of Twitter insults and thrown shots at each other over the years, but last October they finally made the first move in trying to mend their relationship. Although it didn't go so smoothly!
Initially being the one to extend an olive branch, Lady Gaga presented Sharon Osbourne with a birthday cake to pass on to Kelly after her performance on The X Factor.
However, Kelly rejected the cake and lashed out at the 'Born This Way' star on Twitter, implying that she was a hypocrite.
But soon after, 29-year-old Kelly had a change of heart and reached out to Gaga, claiming that she was ready to put a stop to their fighting and act "like adults".
And now it finally seems as though the pair are on good terms again - phew!
As well as kissing and making up with pop royalty, Kelly also partied the night away with her parents Sharon and Ozzy.
The lilac-haired Fashion Police host wore a black gown for the occasion, which featured a sheer top and a striking net skirt, while mum Sharon looked sophisticated in a long black dress.
Kelly posted selfies with both of her parents and told fans that the trio were ready to have some fun.
Although it sounded like Sharon had kicked off the celebrations early, as Kelly wrote on Instagram: "Finally found my Mumma! And she is already causing trouble! #oscars."
Also at Elton's Hollywood bash were Kim, Khloe and Kourtney Kardashian, who each wowed in striking outfits.
Pregnant Kristin Cavallari also showed off her baby bump in a pretty nude dress with black lace detail.
What do you think of Kelly and Gaga settling their feud? Let us know below, as the best comment from across the website each week wins £50!
Check out other backstage pictures from the Oscars in our gallery.
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