Terrence Howard's ex-wife is calling off the dogs -- dropping the lawsuit accusing him of assaulting her during a vacation in Costa Rica ... TMZ has learned.
According to court docs, Michelle Ghent filed a request to dismiss the whole case. As we first reported, Michelle sued back in 2015 ... claiming he strangled her during an argument and threatened to kill her. Terrence claimed it was mutual combat.
A source connected to the case tells us this was no settlement though -- Terrence didn't pay her a dime. We're told lawyers' fees on both sides just got astronomical, and Michelle decided to walk away from the legal fight.
Ghent's attorney tells us it wasn't about money, but more that she didn't want his children -- who were on the vacation -- dragged into the case as witnesses.
The catch here is Michelle wants the suit dismissed without prejudice, meaning she could refile it in the future. Maybe she'll hit the lottery.