The Pushing Daisies actress parted ways from Harry Potter star Thewlis late in 2010 after nine years together. Friel and Ifans sparked rumors of a romance earlier this month after he was photographed wearing a bathrobe outside her Hollywood home.
The stars reportedly grew close since they started filming Peter Pan prequel Neverland in September - and now they've gone public with their romance.
They were snapped arm in arm outside Hollywood hotel Chateau Marmont and Friel has gushed about her new beau.
She tells Britain's News of the World, "I'm with Rhys and I'm very happy about it."