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6 year oldMs Daniels was arrested for allegedly touching a patron in Sirens, the venue where she was performing.
Her lawyer, Michael Avenatti, shared a court document saying the case was dismissed on Thursday.
Ms Daniels hit the headlines after alleging she had slept with President Donald Trump in 2006, which he denies.
Mr Avenatti had earlier called the arrest "a setup" and "politically motivated".
A police charge sheet tweeted by a CBS News reporter says Ms Daniels touched a police officer posing as a patron "in a specified anatomical area".
Documents posted on the Franklin County Municipal Court website showed Ms Daniels had posted $6,054 (£4,586) in bail.
Mr Avenatti tweeted that Ms Daniels, real name Stephanie Clifford, had been performing "the same act she has performed across the nation at nearly 100 strip clubs".
Mr Avenatti posted a statement from Ms Daniels saying she would not be able to go ahead with Friday night's show.
"I deeply apologise to my fans in Columbus," the statement read.
I am pleased to report that the charges against my client @stormydaniels have been dismissed in their entirety (below motion was just granted). I want to thank Joe Gibson & his colleagues at the prosecutors ofc for their professionalism starting with our first call early this am. pic.twitter.com/xHPSWsyqM2
— Michael Avenatti (@MichaelAvenatti) July 12, 2018
After charges were dropped, Mr Avenatti tweeted his thanks to the prosecutors' office "for their professionalism".
An Ohio law known as the Community Defense Act proscribes anyone touching a nude or semi-nude dancer, unless they are related.
The Sirens venue tweeted last month to say Ms Daniels would make two "exclusive appearances" there.
A person who answered the phone at Sirens declined to comment.
Ms Daniels says that she was paid $130,000 (£98,000) shortly before the 2016 presidential election to keep quiet about her alleged sexual encounter with Mr Trump.
She is trying to free herself from a non-disclosure agreement signed before the election, and suing over a "defamatory" tweet by the US president earlier this year. Mr Trump denies all allegations.
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