A prison service spokesman told Tamimi and her mother, who was also jailed over the incident, were being driven by Zionist regime authorities from a prison inside Israel to a checkpoint leading to the occupied West Bank, where they live.
"They just left the prison," Assaf Librati said.
They were expected to arrive at a checkpoint near the Palestinian city of Tulkarm in the occupied West Bank, but the exact checkpoint was changed three times by Israeli authorities.
Tamimi's family and friends sung songs as they waited for her release at a checkpoint. Israeli settlers emerged opposite the waiting crowd, waving flags opposite the supporters.
After eight months in Israeli captivity, Tamimi was released as a celebrated figure in Palestinian politics, amid a period of particular tension along the border.
Tamimi was arrested on December 19 last year, days after she was filmed with her cousin Nour Tamimi slapping and kicking two Israeli soldiers who refused to leave their home in Nabi Saleh, near Ramallah.
Turning 17 in prison, Tamimi was refused bail throughout her detention and subsequent trial in an Israeli court, where she was tried for assault, stone-throwing, incitement to violence and making threats.
In March of this year, a plea deal was struck with Israeli prosecutors, giving her an eight-month sentence, including the time she had already served. Her cousin was released immediately.
For Palestinians, Tamimi became a hero for standing up to Zionist regime aggression and invasion of her family home.
Meanwhile, Israelis initially saw the video as emblematic of Israeli restraint, the soldiers backing away, not reacting. However, after the girls and Ahed's mother, who also filmed the incident, were arrested, there was criticism even within Israel that prosecutors were overreacting.
Ahed's case drew international support from high-profile artists, actors, academics, and athletes calling for the teenager's release.