"Just keep doing what you're doing, and you appear to be doing it well," Los Angeles Superior Court Judge Stephanie Sautner told Lohan at the hearing.
The "Mean Girls" actress, 25, was dressed conservatively in a pale blue cardigan and dark trousers during her the progress report of her second month of a five-month community service sentence at the Los Angeles County morgue, along with taking therapy sessions.
Lohan's next hearing is scheduled for February 22, before which she is required to complete 15 days of community service and five therapy sessions.
If she stays on track, the actress is likely to complete her DUI-related probation by March, and her theft violation will be downgraded to summary, non-supervised probation.
Lohan rose to fame as a likable child star of Disney movies such as "The Parent Trap," but since 2007, she has spent time in rehab and jail after being convicted on drunk driving and drug possession charges.
The actress pleaded no contest, which is the equivalent of guilty, to stealing a gold necklace from a jewelry story in 2011, and was sentenced to 480 hours community service at a L.A. women's detention center and the county morgue.
Lohan's failure to adequately perform that sentence led Sautner to angrily revoke her probation in October and send her to jail. The actress served just over four hours behind bars in November due to overcrowding and was assigned to community service at the county morgue and psychological counseling for the rest of her sentence.