The duo, who have known to be very close friends, were reportedly shopping together in the Big Apple, reported TMZ Online.
The actress recently completed her 90-day stay court ordered stint at the Cliffside Malibu treatment centre to treat her alcohol addictions.
After coming out of the rehab, Lohan had told her friends she had permanently excised all the bad influences in her life in order to focus on sobriety and kick her substance abuse issues.
But it seems Lohan has not chucked all her bad influences yet as Chatwal was busted in April after cops say he tried to get on a plane with cocaine, weed, heroin and various prescription pills. He struck a plea deal that let him avoid jail if he completed 12 months of in-patient rehab.