Within hours, Gibson was charged with misdemeanor spousal battery and pleaded no contest in a deal with prosecutors that kept him out of jail.
In a separate case, prosecutors announced they found insufficient evidence to pursue Gibson's extortion allegations against Oksana Grigorieva, the victim in the battery case and the mother of Gibson's infant daughter.
As part of the plea deal, Gibson will spend three years on probation, undergo a year of domestic violence counseling, and perform 16 hours of community service.
If he complies and doesn't get into further trouble, he won't have to make another court appearance in the case.
Gibson, 55, dressed in a blue suit and blue striped shirt, said little during the brief hearing beyond acknowledging his rights and the terms of the plea deal.
Grigorieva did not attend the proceeding.
The developments marked a swift ending to a legal saga that began last summer when Grigorieva, a Russian musician, reported Gibson had hit her during a fight at his Malibu home in January 2010.
By the time she went to police, the pair were locked in a bitter custody battle and the actor soon accused her of attempting to extort him during negotiations for custody arrangements involving their daughter.
Months of investigation by deputies followed. Sexist and racist rants by Gibson were leaked to celebrity website RadarOnline.com, and Grigorieva did interviews with Larry King and People magazine detailing threats she attributed to Gibson.
The custody battle continues in a Los Angeles court, but the proceeding is closed to the public and the records are sealed.
In the battery case, Gibson entered a plea in which he did not admit guilt and cannot be used against him if Grigorieva files a lawsuit.
His lawyer Blair Berk said the Academy Award winner made the move with the best interests of his children in mind.
"It is with only that in mind that he asked me to approach the district attorney with a proposal that would bring all of this to an immediate end," Berk said in a statement.
Prosecutors said they agreed to the deal because it offered adequate protection for Grigorieva and her daughter with Gibson.
A protective order issued by Superior Court Judge Stephanie Sautner forbids Gibson from threatening or becoming violent with Grigorieva or her children.
Grigorieva, 41, also has a teenage son with actor Timothy Dalton.
The order, however, will not keep Gibson from seeing his infant daughter.
"The protective order has restrictions, as long as he complies with the protective order, he can see his daughter," said John Lynch, a head deputy district attorney who helped handle the case.
Lynch thought the plea agreement was warranted, given Gibson's lack of a serious criminal history.
"I think that this disposition would have occurred if we had taken it to trial," Lynch said.
The battery charge was another blow to Gibson's reputation, which took a major hit after his 2006 arrest for drunken driving. A deputy's report leaked to the celebrity website TMZ revealed the action star had used anti-Semitic and sexist slurs.
His conviction was later expunged after he completed terms of his sentence.
The charge came a week before Gibson's latest film, "The Beaver," is due to premiere at the South by Southwest festival in Austin, Texas. It is only the second major film that Gibson has starred in since 2002.
He portrays a deeply troubled man able to communicate only through a beaver puppet in the film directed by Jodie Foster.
Although Gibson's prominence as an actor has diminished, he has remained a Hollywood fixture and drawn audiences as a director.
His relationship with Grigorieva helped return Gibson to the limelight, with the pair appearing on red carpets and award shows. Gibson confirmed her pregnancy on "The Tonight Show."
Gibson was accused of striking her on Jan. 6, 2010, although she did not report it until months later.
The Sheriff's Department opened its investigation in July, and later began its probe into the extortion allegation made by Gibson.
By then, the pair had broken up and reached a confidential custody agreement regarding their daughter Lucia. Although the exact details are not public, Gibson's attorney said last year the actor was paying for a house and car for Grigorieva along with child care.
The former couple has appeared opposite each other several times in a family law court that has heard issues related to child care, financial issues and evidence in the criminal investigations of both parents.
Grigorieva's attorneys lauded the decision to not charge her with extortion, saying the conclusion was reached "after very careful consideration of all the facts and with complete fairness to all involved."
Grigorieva never invoked her Fifth Amendment right during interviews and turned over numerous confidential documents, according to a statement issued to The Associated Press by her lawyers Daniel Horowitz, Ronald Litz and Martin Garbus.
"Ms. Grigorieva will now concentrate on co-parenting Lucia, resuming her charitable work for the children of Chernobyl and moving forward with her life," the statement said.
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