Kyle Richards has patched things up with her sister Kathy Hilton after a months-long estrangement
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Kyle Richards has patched things up with her sister Kathy Hilton after a long estrangement over the show she created inspired by their childhood.

A source tells PEOPLE that the Real Housewives of Beverly Hills star, 49, and Hilton, 59, are “finally in a better place.”

“They’ve worked on their relationship and things have gotten so much better,” the insider said. “Kyle hated that they weren’t getting along. Kyle is so much happier when there is peace in her relationships with her sisters.”

The good news comes after the duo were seen together in late September, celebrating sister Kim Richards’ 54th birthday.

“I can’t tell you all how much this birthday meant to me,” Kim wrote on Instagram, captioning a photo of the three. “Having both of my sisters right next me to meant the world. @kathyhilton & @kylerichards18 I love you both so so much. I know mom & dad were with us … Thank you for such a beautiful dinner last night and bringing so many our dearest and special friends to celebrate my day and the beginning of this new year for me.”

Back in May, Kyle spoke to PEOPLE about her rift with Hilton. According to Kyle, tensions between the two arose when Hilton got the impression that American Woman — the drama series inspired by Kyle’s childhood that she created and executive-produced — would be too personal.

I hope when Kathy sees the show, she’ll understand,” Kyle told PEOPLE. “I would never tell anyone else’s stories. And I felt bad because she thought it was something that it wasn’t. I was inspired by my mom [Kathleen Richards], being a single mom in the ’70s. It was a crazy, fun, reckless time. But it’s not based on my actual life.”

RELATED: Kyle Richards Opens Up About Tension with Her Sisters Over Her New Show: ‘I Would Never Do Anything to Disrespect Them’

Kyle noted that sister Kim had been supportive and “excited” about the show: “I love my sisters and I would never do anything to disrespect or embarrass them. I’m looking forward to the show coming out so Kathy can see it and realize. That’s my hope.”

The mom to four daughters said then she felt positive about the future. “Every family has their moments, but we’ll be fine,” Kyle explained. “I love my sisters and that’s all that matters.”