Spotted making their way to Mercedes Bar to join the rest of the TOWIE cast in the holiday hotspot, Lydia and Arg seemed in high spirits as they were papped laughing together with big grins on their faces.
The close pals sparked hopes of romance last series as Arg tried to woo his ex girlfriend, but still yet to win over Lydia, could the couple rekindle their relationship this time round?
In the last series of TOWIE, Lydia and Arg grew close and despite Arg's efforts to reignite their romance, at Leah Wright's wedding Lydia told the 26-year-old she wasn't ready for a relationship and just wanted to be friends.
A heartbroken Arg told his ex that he didn't think they could ever just be friends and in the series finale, Arg pulled out all the stops to change Lydia's mind, surprising her with a pair of shoes she'd always wanted and a performance of their song 'Flying Without Wings' by a Westlife tribute singer.
After the show aired, Lydia said Arg's romantic gesture had "literally melted her heart" and beginning to back track on her first thoughts, Lydia said she wouldn't rule out getting back with her former flame.
She said: "You never know, one day we might end up together."
Will they? Won' they? We still don't know!!
With Arg still smitten with Lydia we have no doubt he'll be going all out to win her back once more, could Ibiza be the place to do it?!
Yesterday (21 September), the pair looked pleased to be back in each other's company as they joined their friends for a drink or two on the White Isle.
Lydia, as ever, looked super-stylish rocking a printed purple jumpsuit and lace-up, peep-toe boots, while Arg opted for a blue t-shirt and white shorts for his holiday attire.
The pair joined Lauren Pope and Vas J Morgan, Georgia Kousoulou and Dan Osborne and returning TOWIE star Mario Falcone.
Reveal is now on Google Plus! Join us here for the latest pictures, fashion and celebrity news!