The couple, who were together for a few months, parted ways earlier this month after a heated argument.
They have now sorted out their differences and will be attending the upcoming NRJ Music Awards in Cannes in France, reports thesun.co.uk.
“Taylor realised she was being a bit full-on. She is now more relaxed about their relationship. She intends to enjoy it more rather than worry about where it could eventually lead," a source said.
“Harry is not the sort of guy you can stay mad at for long. She is given him some space and it has done them both a world of good. What happened over New Year is now a distant memory," the source added.