Jamie and Lynn Spears: Reconciled!

Britney Spears' divorced parents are back together.

Jamie and Lynn Spears, who also have a daughter Jamie Lynn Spears, are reconciling eight years after getting divorced. They're not married again (yet), but "they're back together and are doing well and happy," a source tells People.

"[They're] not remarried but back together."

The couple, who split in 2002, were looking friendly on Saturday at Los Angeles lounge Boudoir, cheering and dancing as DJ Mr. Best spun Britney Spears hits.

"They were in a great mood together," says an onlooker of the pop star's folks. "They were laughing together, dancing and laughing [and] totally having fun."

This sparked rumors of the couple rekindling their lost passion, which were soon confirmed by people close to the singer's camp and her parents themselves.

"Lynne is a dear, sweet person," a family friend says. "She deserves all the happiness in the world. My only wish for her would be a happy ending."

Congratulations to the whole family on this happy news.