Ice Spice was "confused" by Matty Healy's racist remarks about her but "didn't really care".
The 1975 frontman called the 'Princess Diana' star - who was born to an African-American father and a Dominican mother - a "chubby Chinese Lady", "dumb" and said she sounds like an "Inuit Spice Girl" during an appearance on 'The Adam Friedland Show'.
Matty also tried to mimic her by trying to speak with a Chinese and Hawaiian accent.
The episode was recently pulled by Spotify and Apple.
However, she isn't bothered about it after he apologised.
The 23-year-old rapper told Variety: "When I had heard that little podcast or whatever, I was so confused.
"Because I heard ‘chubby Chinese lady' or some s*** like that, and I'm like, ‘Huh? What does that even mean?' First of all, I'm thick. What do you mean Chinese? What? But then they apologised or whatever. And the whole time, I didn't really care."
Matty also said sorry in person and she insisted they are "good".
She added: "I saw him at the Jean Paul Gaultier party a couple days ago, and he was like, ‘Hey, you OK?' and I'm like, ‘Of course.' He apologised to me a bunch of times. We're good."
The 34-year-old star has faced a lot of backlashes a lot of late, including the Ice Spice comments and for calling Harry Styles a "queer-baiter".
He has also come under fire for his on-stage antics, while singer Rina Sawayama called him out for alleged "microaggressions" during her Glastonbury set.
In April, Matty apologised on stage to Ice Spice and insisted he "never meant to hurt anybody".
Noting that he is "genuinely sorry", he said during a New Zealand concert: "Sorry if I've offended you. Ice Spice, I'm sorry. It's not because I'm annoyed that me joking got misconstrued, it's 'cause I don't want Ice Spice to think that I'm a d***.
"I love you Ice Spice…. It's OK for me to be like, a trickster or whatever, but I don't want to be perceived as mean-hearted...
“We all get it wrong, and I just have to do it in public and then apologise."