The chat show host took the opportunity to tease her good friend as she presented the 'Legally Blonde' actress with an award at the ELLE Women In Hollywood 2013 ceremony, joking about her infamous disorderly conduct arrest video.
The footage, which leaked online in April, saw Reese verbally insult a policeman who arrested her husband Jim Toth on suspicion of driving under the influence (DUI) in Atlanta, Georgia.
Chelsea said: ''Personally, as a true friend, my favourite project of hers was an overlooked short film that she made earlier this year. She plays a very inebriated housewife defending her inebriated husband ... And if you haven't seen it, you can go on YouTube.''
Reese took the joke well and was seen doubled over laughing in her seat as good sport Jim chuckled next to her.
There were clearly no hard feelings between the pair as Reese posed next to Chelsea for a photo opportunity at the swanky banquet held at the Four Seasons hotel in Beverly Hills.
The 37-year-old actress even told E! News: ''Any party gets that much better when Chelsea Handler shows up.''
Comedienne Melissa McCarthy, French beauty Marion Cotillard, Bond Girl Naomie Harris, rising starlet Shailene Woodley, veteran actress Eva Marie Saint and director Nancy Meyers were also honoured at the annual ELLE Women In Hollywood event.
The night also marked the first red carpet appearance from 'Glee' star Lea Michele since the death of boyfriend Cory Monteith in July this year.
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