An insider tells us that rehab did wonders for Demi’s mood, she is happy, healthy, and ready to move forward!

It’s too often that celebrities check into rehab and leave with more problems than they started with. Fortunately, that is not the case with 18-year-old Disney starlet, Demi Lovato. The teen icon, who checked into a Chicago based rehabilitation center last fall, has been spotted out and about in Tinsletown and seems to be doing great! She may still have the scars of her past, but an insider promises us she’s on the path for progress.

“Demi is in great spirits, a great mood. Her treatment really seems to be working and it isn’t an act, she’s taking her recovery very seriously,” revealed an inside source close to Demi.

The actress has recovered from issues which resulted in self-cutting, as well as a public outburst against one of her backstage dancers, whom she reportedly hit when the dancer threatened to out her partying ways. These problems stemmed for a variety of stresses Demi was experiencing, including reported self-esteem issues and her ex boyfriend Joe Jonas flaunting his new girlfriend Ashley Greene in her face while they were on tour together.

As we reported earlier this week, Demi was seen eating lunch with an older gentleman, most likely a bodyguard, at the Cheesecake Factory. Waiters tell us she was a pleasure to have in the restaurant, and that she was a very pleasant and polite customer. Fortunately fans respected her privacy and let her dine in peace with only minimal rubbernecking.

We’re glad to have Demi back in Los Angeles and hope that her progress sticks. It’s refreshing to see a celebrity take recovery seriously, and we hope she continues to visit the eating disorder clinic until she’s 100% healthy again! Do you think Demi is full steam ahead on her path to progress, or will being back in LA derail her recovery?