The two stars had a bitter past and had engaged in mud-slinging after their 2001 film, Ajnabee.
Their catfight, which is now famous, had started on the sets of the film. The two always maintained their distance after that.
At a film awards announcement event on Tuesday at the US consulate grounds at the Bandra-Kurla Complex, the two seemed to have kissed and made up.
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Initially they stood at extreme ends on the dais, but later Bebo, Bips and Saif Ali Khan were seen chatting.
Interestingly, there was buzz about a rumoured affair between Saif and Bipasha during the filming of their 2008 film, Race. Guess all three have let bygones be bygones.