News that Harry and Meghan have given their children 'Prince' and 'Princess' titles has sparked fresh hopes of a thawing of the royal rift.
Commentators said the move, announced on Wednesday after the couple's team confirmed Lilibet was christened at their California home last week, could be step in the right direction for the family.
It has even raised hopes the Sussexes will be accepting the invitation to King Charles' coronation in May.
A spokesperson for Harry and Meghan said 21-month-old Lilibet was christened 'Princess Lilibet Diana' during a private and intimate ceremony at their Montecito home on Friday.
The confirmation marks the first time either of the children have been referred to as 'Prince' or 'Princess' in an official capacity, with the King reportedly having been informed of their intentions to use the titles before the announcement.
None of the senior royals were at the christening, although insiders said the King, Queen Consort Camilla, William and Kate were all invited.
Their lack of attendance, the sources claimed, was more down to logistical difficulties than a malicious snub.
The source also said the couple's first-born, Archie, was formally referred to as 'Prince', although this has yet to be updated on the royal family's website, which still refers to them as 'Master Archie' and 'Miss Lilibet'.
“The lines of communication are improving,” said royal commentator Afua Hagan.
“There has been a defrosting of royal relations - from both sides.”
There is yet to be any confirmation over whether Harry and Meghan will attend the May 6 coronation, with the question further complicated by the fact the ceremony will fall on the same day as Archie's fourth birthday.
Ms Hagan however believes the bestowing of the Prince and Princess titles on the royal children was a likely indicator they would be attending.
“It is a good indication that they will attend the Coronation and indicates where their head is at,” Ms Hagan said, adding: “They still want to have ties to the Royal Family.”
Richard Fitzwilliams, a longstanding royal commentator, also believes the move could be a tiny olive branch.
In line with the 1917 Letters Patent issued by George V, the title of prince or princess passes down automatically to male-line grandchildren of the sovereign, meaning Archie and Lilibet inherited the titles following the late Queen's death in September.
They will not, however, use their 'Royal Highness' titles, which Harry and Meghan relinquished after announcing their departure from The Firm.
If the King wanted to block the Sussex children from being referred to as Prince or Princess, he would have needed to issue a fresh Letters Patent.
It's understood Harry and Meghan will allow Archie and Lilibet to decide for themselves on whether they want to keep their titles when they grow up.