Ayaan Ali was nabbed by customs officials on March 14 from Benazir Bhutto International Airport here when she was trying to board a UAE flight with over USD 500,000 in her possession.
Under Pakistani laws, a passenger with more than USD 10,000 should declare the money to custom authorities.
Lahore High Court today heard the case and granted bail to the accused.
Ayyan got huge media attention during her more than a dozen court appearances.
More From This Section
Several rumours and stories were spun out during the four months period she spent in the Adyala Jail in Rawalpindi. But it was not clearly known whether she owned the money or was trying to smuggle it on the behalf of some "influential politician".
Zulfiqar Mirza, an estranged leader of Pakistan People's Party (PPP), had alleged that the model was linked with party chief and former president Asif Ali Zardari, which was denied by the PPP.
There were also reports that the model was part of a group involved in smuggling foreign currency out of the country to launder it as the same money is sent back as remittances, considered as legally earned money.
During the hearing of the case, Ayyan's father was also attacked by unknown gunmen near Rawalpindi.