Where Taylor Swift and Blake Lively’s Friendship Stands After Justin Baldoni Dropped Subpoena Against Singer

Taylor Swift and Blake Lively have made progress in their relationship.

The pop superstar, 35, and the actress are working towards being “on good terms,” but “their friendship isn’t the same as it was before,” a source tells PEOPLE exclusively.

Swift and Lively, 37, “aren’t as close and haven’t been spending as much time together as they did in the past.”

The Grammy winner was dragged into the Gossip Girl alum’s ongoing legal battle with her It Ends With Us co-star and director Justin Baldoni.

PEOPLE previously reported that Swift and Lively rekindled their friendship in April after the “Fortnight” singer distanced herself from the actress.

According to the insider, “Taylor is working to trust Blake again but it’s going to take some time.”

The twosome’s friendship dates back to 2015 after Lively shared a photo from a L’Oréal campaign, which referenced Swift’s “Bad Blood” music video. It caught Swift’s attention, and the pair began spending time together.

The Complete Timeline of Taylor Swift and Blake Lively’s Friendship, From Their First Outing to Justin Baldoni Drama

A Complete Timeline of Blake Lively and Justin Baldoni’s Feud (Including the Latest in their Legal Battle)

In December 2024, Lively filed a complaint against Baldoni, 41, alleging that he sexually harassed her on the set of their film adapted from the Colleen Hoover novel of the same name.

She further accused him of trying to “destroy” her reputation with a calculated smear campaign, which was detailed in a New York Times article titled, “‘We Can Bury Anyone’: Inside a Hollywood Smear Machine.”

Less than two weeks later, she filed a formal lawsuit against the Jane the Virgin alum, accusing him of sexual harassment, breach of contract, infliction of emotional distress and invasion of privacy.

However, Baldoni denied all her accusations and filed his own $400 million defamation and extortion lawsuit against Lively, Ryan Reynolds, and their PR team.

In Baldoni’s countersuit, he claimed Swift was present at a meeting that took place at Lively’s New York City penthouse, where he and the actress allegedly met to go over her rewrite of their movie’s rooftop scene.

Baldoni claimed that during their meeting, Lively attempted to intimidate him by using her relationships with Reynolds and Swift, calling them “absolute titans” as writers and storytellers.

He claimed she further said, “I’m so lucky to have them as creative barometers,” and they are her “dragons” who protect her in her battles.

Baldoni suggested that Lively was referring to Swift when he texted the actress about her script revisions, writing, “I really love what you did. It really does [help] a lot. Makes it so much more fun and interesting. (And I would have felt that way without Ryan and Taylor).”

The trial for Lively v. Wayfarer Studios et al., which will cover both lawsuits, is scheduled for March 2026.