She had been jailed in connection with a 1997 corruption case in which she was convicted by a special court on September 27.
The AIADMK leader waited for an auspicious time to leave the prison after the trial court ordered her release following the furnishing of two sureties as ordered by the apex court on Friday.
Thousands of supporters gathered around the prison in Bangalore awaiting the former chief ministers release. They greeted her exit dancing and by shouting long live Amma.
Jayalalithaas Z category security was restored as she stepped out and was escorted to a waiting car by her security team before being driven off to the special purpose HAL airport 25 km away. She briefly smiled and waved at AIADMK supporters who had lined up along the 500 metre path leading from the prison gate to the main road.
Though the order for Jayalalithaas release reached the prison at around 2.45 pm, she waited till the end of the inauspicious period of Yamagandam at around 3.15 pm to step out of the prison, jail officials said.
Tamil Nadu Chief Minister O Pannerselvam, a number of ministers, MPs, former MPs and party leaders welcomed her as she exited jail.
Amma has not been part of a huge corruption scandal like the 2G scam or Commonwealth scam. She did not commit a big offense. She will come out clean in the future, former Rajya Sabha MP Govind Rajar said.
Jayalalithaas associates Sasikala, Sudhakaran and Elavarasi, also convicted in the Rs 53.50 crore corruption scam, were also released on bail on Saturday following the Supreme Court directive.