Yanira Maldonado, 42, walked out of the prison on the outskirts of Nogales, Mexico, and into her husband's arms late Thursday and crossed through the Nogales port of entry into Arizona.
After spending the night in a hotel, she drove away with a police escort at mid-morning Friday and was expected to return to her Phoenix-area home to be reunited with her children.
Mrs Maldonado spoke briefly after her release, thanking US State Department officials, her husband, her lawyers and prison workers who made her stay comfortable.
"Many thanks to everyone, especially my God who let me go free, my family, my children, who with their help, I was able to survive this test," she said.
Mrs Maldonado also said at a news conference later that she still loves Mexico, and the experience will not stop her from returning in the future to visit family there.
"It's not Mexico's fault. It's a few people who did this to me and probably other people, who knows?" Mrs Maldonado said.
"I'm still going to go back."
The family's lawyer in Nogales, Jose Francisco Benitez Paz, said a judge determined Thursday that Mrs Maldonado was no longer a suspect, and all allegations against her were dropped. Prosecutors are appealing the ruling, but Benitez said that is routine and Mrs Maldonado will not have to return to testify.
Mrs Maldonado's release came hours after court officials reviewed security footage that showed the couple boarding a commercial bus traveling from Mexico to Phoenix with only blankets, bottles of water and her purse in hand.
US politicians portrayed her as a victim of a corrupt judicial system and demanded her release, with Arizona congressmen saying they were working closely with Mexican authorities.
Arizona Senator Jeff Flake, who previously said he has had "multiple conversations with the deputy Mexican ambassador," on Friday welcomed Mrs Maldonado's release.
"Though I'm sure this last week has been a nightmare for her, I'm thankful that Mrs. Maldonado's clear innocence was proved and that she is now home safe with her family," he said in a statement released by his office.
Arizona Gov. Jan Brewer said her administration had been closely monitoring Mrs Maldonado's case and been talking with authorities on both sides of the border.
"As Americans, we all know that our precious constitutional rights don't extend beyond our nation's borders," she said.
"It is this kind of case that once again illustrates how blessed we are in this country. Most of all, I am so happy for the Maldonado family that they can now put this chapter of their lives behind them."
The judge had until late Friday to decide whether to free Mrs Maldonado or send her to another prison in Mexico while state officials built their case.
Mrs Maldonado was arrested by the Mexican military last week after they found nearly 12 pounds (5.4 kilograms) of pot under her seat during a security checkpoint.
Benitez noted it was a fairly sophisticated smuggling effort that included packets of drugs attached to the seat bottoms with metal hooks - a task that would have been impossible for a passenger. He said witness testimony and the surveillance video showed Mrs Maldonado was innocent.
"There is justice in this country," he said.
Mrs Maldonado husband, Gary Maldonado, said he originally was arrested after the pot was found under his wife's bus seat.
But after Yanira Maldonado begged the soldiers to allow her to come along to serve as a translator, the military officials decided to release him and arrest her instead. Gary Maldonado alleges authorities initially demanded $US5,000 ($5205) for his wife's release, but the bribe fell through.
"Here, we are guilty until you are proven innocent," he said after the court hearing.
Mrs Maldonado's lawyer said there is no bail in serious criminal cases in Mexico, and that included the drug smuggling charge she faced. Instead, he had to gather evidence that could clear her before a judge, and he praised the bus company for gathering the video evidence and providing a list of fellow passengers who could back up her claims.
"I as a defense attorney have to prove her innocence," her lawyer said Friday. "After I got the evidence I knew I would win."
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