"Ms. Carano was always well respected by her directors, co-stars, and staff, and she worked hard to perfect her craft while treating her colleagues with kindness and respect," Lucasfilm said in a statement.
"With this lawsuit concluded, we look forward to identifying opportunities to work together with Ms Carano in the near future."
The two sides stipulated in a federal court filing on Thursday that the case should be dismissed with prejudice, meaning it cannot be refiled. A judge still needs to formally dismiss it. The case had been scheduled to go to trial in Los Angeles in February 2026.
The lawsuit, filed in a federal court in California last year, alleged Carano was wrongfully terminated from the "Star Wars" galaxy Disney+ series in 2021 after two seasons due to a post likening the treatment of American conservatives to the treatment of Jews in Nazi Germany.
Her posts were widely criticised online and spurred a trending #FireGinaCarano hashtag.
"I'd like to thank you all for your unrelenting support throughout my life and career, you've been the heartbeat that has kept my story alive. I hope to make you proud," Carano wrote in a statement on Thursday.
"I am excited to flip the page and move onto the next chapter. My desires remain in the arts, which is where I hope you will join me."
Carano thanked Elon Musk for helping fund the lawsuit "and asking for nothing in return". The suit had alleged that the 43-year-old actor was fired because she "dared voice her own opinions" against an "online bully mob who demanded her compliance with their extreme progressive ideology".
Carano is a former mixed martial artist who played the recurring character Cara Dune on the show, which launched in 2019 and ran for three seasons. A feature film starring Pedro Pascal and Sigourney Weaver, The Mandalorian and Grogu, is set for release next northen summer.
Carano had previously been criticised for mocking mask-wearing during the COVID-19 pandemic and making false allegations of voter fraud during the 2020 presidential election.
