Casey Anthony and her defense team hugged and wept in ecstatic celebration.
She looked stunned as the verdict was read count by count. She was found guilty only of lying to the police.
Casey was in tears as she was brought in front of Judge Belvin Perry, who confirmed the not guilty verdict.
Prosecutor Jeff Ashton shook his head and prosecutor Linda Drane Burdick look stunned as the verdict was read.
Casey mouthed "Thank you," and held hands with her attorneys.
Outside court, the defense team talked about the stunning verdict.
"Casey did not murder Caylee, it's that simple, and today our system of justice has not dishonored her memory by a false conviction," said Jose Baez.
They were followed by state's attorney Lawson Lamar.
"We're disappointed by the verdict today, and surprise, because we know the facts, and we put in absolutely every piece of evidence that existed," he told the media.
When the announcement came earlier in the afternoon that the jury had reached a verdict, spectators filed into court and there was an agonizingly tense 45-minute wait before the verdict was read.
A police escort guarded Cindy and George Anthony as they made their way into court to hear their daughter's fate.
Casey was brought into the courtroom, looking anxious. Defense attorney Cheney Mason squeezed her shoulder and whispered something to her.
Jose Baez also tried to calm her.
In the back, George Anthony had his hands clasped, as if in prayer. But after the verdict was read, he and Cindy walked out, leaving Casey to celebrate with her defense team.