'Southern Hospitality' Star Grace Lilly Arrested On Drug Charges

"Southern Hospitality" star Grace Lilly was arrested Tuesday ... and it looks like drugs were allegedly involved.

According to new legal docs obtained by TMZ, Grace was busted for possession of a controlled substance.

It appears Gracy has already been released from custody.

It's the second time in three months Grace has been arrested in South Carolina ... as we first told you, she got busted back in December in Charleston.

In that first arrest, Grace was busted on a warrant after being pulled over for an alleged traffic violation ... and cops say they found "happy pills" in her purse.