Academy Award winning actress Tatum O’Neal pleaded guilty Wednesday in New York to disorderly conduct following her controversial drug arrest in June.

It was the talk of the town when former child actress Tatum O’Neal was arrested early last month as she exchanged money for drugs on the Lower East Side, not far from where she resides.

Police officers found two bags of cocaine in her possession, according to a court complaint.

It was initially reported she had bought crack cocaine from a homeless ex-con, before the eyes of an undercover cop. Police later said she had bought powder cocaine. Both she and the drug dealer, a 33-year-old man named Alan Garcia, were arrested.

Tatum O’Neal, who was convicted in 2003 of criminal possession of crack, was released without bail the same day. She was initially charged with criminal possession of a controlled substance and arraigned in Manhattan Criminal Court.

The misdemeanor offence was punishable by up to one year in jail, court officials said. Charges against her will be dropped if she complies with the court’s orders, the Associated Press reports.

Manhattan Criminal Court Judge Elisa Koenderman ordered the actress to spend two half-day sessions in a drug treatment program and pay a $95 fee.

She is next scheduled to appear in court on Sept. 4. Should she meet these conditions by then, the case will be dismissed.

While Tatum O’Neal may have sighed in relief Wednesday upon hearing the court’s decision, she was already pleased back in June, upon being arrested, explaining that the arresting officers actually saved her life, by preventing her from taking the drug.

Tatum O’Neal has been outspoken about her substance abuse problems, detailing in her memoir, “A Paper Life,” how her addiction to heroin troubled her relationship with her three children with tennis pro John McEnroe, her former husband.

Only daughter of “Love Story” star Ryan O’Neal, in 1974, she became the youngest person ever to win an Academy Award, a record that remains unbroken to this day. She was merely 10 years old when she won a Best Supporting Actress Oscar for her performance in “Paper Moon.”