COFFS Harbour's Tyson Egan, previously accused of manslaughter, had his charge dismissed by the Director of Public Prosecutions.
He was accused of throwing a punch which knocked out childhood friend and father-of-one Kyle Watkins unconscious during a drunken fight in Coffs Harbour in October, 2015.
Mr Watkins was airlifted to John Hunter Hospital where his life support was later turned off.
An autopsy found Mr Watkins died as a result of blunt force trauma.
Mr Egan faced trial in the District Court in Coffs Harbour last November, where friend of the two men Tye Wain described them as "brothers" in a witness stand.
The jury was unable to reach a verdict after hearing evidence in the case..
On Wednesday, the DPP withdrew Mr Egan's manslaughter charge.
The Office of the Director of Public Prosecutions couldn't comment further.
Mr Egan has since thanked family and friends on social media for standing by him.
"To all my friends and family that have stood by me through the hardest time of my life, I couldn't have stayed strong if it weren't for you. I finally got a good result today after 2 years and 3 months i can move on with my life. The truth is finally out there and thats all i ever wanted....much love," Mr Egan wrote on Facebook.