Sebastian Telfair Released From Prison

Ex-NBA player Sebastian Telfair got a special holiday gift -- he's out of prison.

TMZ Sports has learned the 40-year-old was released from the Bureau of Prisons custody this week ... after spending the past few months at Fort Dix FCI in New Jersey.

Telfair said he's feeling good and rehabilitated now ... telling Antoinette Media he's ready to get home to his loved ones after taking care of himself.

Telfair was ordered to some time in the slammer for violating the conditions of his supervised release in connection to his healthcare fraud case.

Telfair did have at least one encounter with his longtime acquaintance, Diddy, while at Fort Dix -- as we obtained pics of them having a chat on the yard in November.

Of course, Telfair and Sean Combs hail from the Big Apple ... and made big names for themselves in their respective fields.

Now, Telfair can look forward to keeping his nose clean as he puts the past behind him.

As we reported back in August, Telfair will have some conditions to meet, like abstaining from drugs and alcohol ... so no spiked eggnog for the hooper.

He'll also have to take a class and write a paper on what he's learned and how he'll apply it to his finances.