Justin Baldoni All Smiles in First Sighting Since Blake Lively Settlement

Justin Baldoni is looking anything but stressed after finally closing the chapter on his long-running legal drama with Blake Lively.

We got photos of the actor spotted Wednesday in Nashville stepping out with wife Emily Baldoni and flashing a big grin in his first public sighting since the two sides reached a surprise settlement earlier this week.

The couple kept it casual for the outing at Little Rad Market, rocking matching baseball caps and jeans. Baldoni layered a tan cardigan over a tank, while Emily sported a sweater. The two held hands as they walked out in good spirits.

We broke the story ... Baldoni and Lively settled her lengthy legal battle on Monday then she wasted zero time beelining it straight to the Met Gala. Since then, she's been soaking up quality time with hubby Ryan Reynolds, who got pulled into the drama himself.

Baldoni's attorney Bryan Freedman even told us the settlement was a "huge win" for Justin and while the courtroom chapter may not be completely closed, the energy on both sides is crystal clear: move on and live life.