ET talked to Real Housewives of New Jersey star Melissa Gorga at the opening of her new boutique, Envy, on Thursday night, where she revealed how her sister-in-law is holding up after completing her prison sentence in late December.
"She's holding up amazing, she is doing so well," Melissa shared. "She is so happy to be home, and her spirits are high and she is very zen. She is zen, so it's amazing, it's really nice."
Teresa made an appearance at the opening, and an onlooker told ET that the experience was warm and positive.
"When Teresa walked into the store, Melissa immediately ran up to her and hugged her," the onlooker revealed. "She brought Gia along. Gia and her mom looked like they were having a fun girls night out. Teresa was in great spirits and was talking to all the girls."
An eyewitness also told ET, "Things seem the best it has been with them in years. Smiling, taking photos, talking."
"People seemed very impressed with the store," the eyewitness added. "It had a very good turnout, at one point they had to wait before they could let more people in. Overall, the night seemed successful. At first, when Teresa walked in, people were focused on her. About 10 minutes into the event, it was back to normal and the girls carried on as if nothing had ever happened."
"Everything is going good," Teresa told ET about how things have been since her release. "Really good."
Teresa is enjoying being back home with her family, after completing her prison sentence from when she pleaded guilty to four counts of fraud in March 2014. Her husband, Joe, who also pleaded guilty, will will start serving his own 41-month prison sentence this year.
Melissa rocked a new short hairdo, while celebrating the Envy opening with close friends and family. The Montclair, New Jersey boutique carries clothing from designers such as Elizabeth & James, Jay Godfrey, Derek Lamb and Alexander McQueen.
Watch the video below to see Teresa's first red carpet appearance with her daughter since being released.