Actors Ryan Phillippe and Abbie Cornish made their first public appearance together last week, reminding all of Phillippe’s shocking divorce from Reese Witherspoon and the rumors of an extramarital affair.

When Hollywood darlings Reese Witherspoon and Ryan Phillippe announced in late 2006 that they had decided to divorce, the news came as a shock, considering that the two thespians were one of Tinseltown’s atypical couples – that is, happy and enduring.

As soon as they muttered the word “divorce,” rumors started spreading that Phillippe had been overfriendly with his then co-star Abbie Cornish, on the set of their film “Stop Loss.”

Phillippe, 33, has long denied rumors that an alleged relationship with Cornish, 25, led to the end of his 7-year marriage.

Last Thursday however he put a new spin on the speculation, accompanying the Australian actress to an awards ceremony in Beverly Hills. The two went to the Avalon Hotel, where Cornish was honored at Australians in Film 2008 Breakthrough Awards.

After the ceremony, Phillippe and Cornish enjoyed Hennessy Jazz Night at Teddy’s in the Hollywood Roosevelt Hotel, reports E! Online.

The two first met on the set of the Iraq war drama “Stop-Loss.” Onlookers told E! Online they were quite affectionate throughout the gala and held hands.

Cornish next stars in Jane Campion’s film “Bright Star,” an upcoming romance film that is based on the last three years of the life of poet John Keats. Cornish appears apposite Ben Whishaw, who portrays Keats, while she plays his muse Fanny Brawne.

While Cornish and Phillippe have finally acknowledged they are a couple, it has been a while now since Witherspoon and Jake Gyllenhaal have been known as a pair. Phillippe confessed some weeks ago that it was strange seeing his former wife with another man on magazine covers.

Love stories aside, it was also at the Australians in Film Breakthrough Awards that director Gregor Jordan announced the AIF’s new Heath Ledger Scholarship, created to help struggling Australian actors.