Charity campaigner Ngozi Fulani has accepted an apology from Lady Susan Hussey after the pair met for the first time since the beginning of the royal race row.
She had been visiting Buckingham Palace last month when she was quizzed about her ethnicity by the 83-year-old, who has since stepped down from her honorary role as a Lady of the Household.
Lady Susan was one of Queen Elizabeth II's most trusted friends and is Prince William's godmother.
A joint statement from the Palace and Ms Fulani after the meeting on Friday afternoon said: "At this meeting, filled with warmth and understanding, Lady Susan offered her sincere apologies for the comments that were made and the distress they caused to Ms Fulani."
"Lady Susan has pledged to deepen her awareness of the sensitivities involved and is grateful for the opportunity to learn more about the issues in this area."
They added that Ms Fulani had "accepted this apology" and "appreciates that no malice was intended". Lady Susan has also pledged to "deepen her awareness" of the "sensitivities involved".
Ngozi, who runs a black women's domestic abuse charity In London, had revealed that ten minutes after arriving at the royal residence for the event on November 29 she was approached by a woman who 'put her hand in her hair' in front of colleagues.
In a conversation that followed, Lady Susan is reported to have asked "what nationality are you?", "where do your people come from?" and "what part of Africa are you from?"
Eventually, Ngozi says she replied: "I am a British national, my parents came here in the 1950s," before Hussey responded with: "Oh, I knew we'd get there in the end, you're Caribbean."
Following the allegations made on Ngozi's Twitter account, Buckingham Palace released a statement condemning the "unacceptable and deeply regrettable comments" and confirmed the aide had "stepped aside from her honorary role with immediate effect."
The Palace also said it had reached out to Fulani and "invited her to discuss all elements of her experience in person if she wishes" - although the charity operator denied this had been the case.
She told ITV's Good Morning Britain: "I don't know where this is coming from but I'm telling you categorically we have not heard from the Palace."
It was later reported she had begun a "direct discussion" with the Palace and was "working out how to move forward".
Palace sources hoped that a discussion between the two would lead to "lessons being learnt in a spirit of co-operation".
Ngozi Fulani is chief executive of Sistah Space, a charity that supports African and Caribbean heritage women affected by domestic and sexual abuse.
Ms Fulani and her charity received abusive messages from trolls on social media in the days that followed the revelations, something which was referred to as an "appalling torrent of abuse" in the joint statement on Friday.
READ THE FULL STATEMENT HERE:
"A meeting took place this morning, 16th December, at Buckingham Palace between Ms Ngozi Fulani, founder of Sistah Space, and Lady Susan Hussey to address the incident that took place at a Palace reception last month.
"At this meeting, filled with warmth and understanding, Lady Susan offered her sincere apologies for the comments that were made and the distress they caused to Ms Fulani.
"Lady Susan has pledged to deepen her awareness of the sensitivities involved and is grateful for the opportunity to learn more about the issues in this area.
"Ms Fulani, who has unfairly received the most appalling torrent of abuse on social media and elsewhere, has accepted this apology and appreciates that no malice was intended.
"The Royal Households will continue their focus on inclusion and diversity, with an enhanced programme of work which will extend knowledge and training programmes, examining what can be learnt from Sistah Space, and ensuring these reach all members of their communities.
"Both Ms Fulani and Lady Susan ask now that they be left in peace to rebuild their lives in the wake of an immensely distressing period for them both.
"They hope that their example shows a path to resolution can be found with kindness, co-operation and the condemnation of discrimination wherever it takes root.
"It is the wish of both parties that, at the end of the UN’s 16 days of Activism Against Gender-Based Violence, attention can now return to the important work of Sistah Space in supporting women affected by domestic abuse.
"Their Majesties The King and The Queen Consort and other members of the Royal Family have been kept fully informed and are pleased that both parties have reached this welcome outcome."
