Hilton opened up to ET at a special screening of a new episode of 'RHOBH' on Wednesday.
The reality star spoke with ET's Brice Sander at a special Real Housewives of Beverly Hills screening on Wednesday in Bel Air, and she opened up on reports and rumors of a feud between herself, Kyle and their mutual friend and co-star Lisa Rinna.
Addressing how her relationship is with Kyle currently, Kathy shared, "We're great."
"You know, I had said some things out of frustration, that I was feeling personally," Kathy said, recalling how their supposed confrontation occurred after Kathy had flown back from New York and was tired, hungry and exhausted. She admitted that she "said some things that I should not have said," but that they have since patched things up.
The same goes for her sister Kim Richards -- who attended Wednesday's screening as well.
"That is a rumor I would like to clear up -- Kim and I have never had a problem," she shared. "I mean, like all sisters, we've had a little something here or there... but we get along very, very well."
Meanwhile, her since-improved falling out with Kyle was seemingly made more complicated when Rinna weighed in. However, Kathy was diplomatic when addressing her relationship with Rinna and why she got involved in the first place.
"I think that she cares a lot about Kyle, and I think that she cares about me, and I think that she just wanted to help out," Kathy shared. "Hopefully everybody has good intentions and it works itself out. But I did apologize to Kyle."
Season 12 of The Real Housewives of Beverly Hills airs Wednesdays at 8 p.m. ET/PT on Bravo.