The two were spotted hand in hand leaving the restaurant Nobu in Malibu, California on Saturday, after sharing dinner together.
A witness told the website TMZ, "There were loads of photographers outside the restaurant when they left. Dax took of his shirt so Kate could hide her face with it. She was giggling because he was topless. They walked hand-in-hand to a black convertible and drove off together."
Hudson split from her boyfriend, Owen Wilson, last month, because he was not spending enough time with her.