Katie Holmes Lunches on New York City's Upper East Side!

Katie Holmes is all smiles as she lunches with a pal at Amaranth on the Upper East Side of New York City on Wednesday (June 19).

After lunch, the 34-year-old actress hopped on the subway and headed on her way!

“Tom and Katie are in a really good place,” a source told E! News about Katie and her ex Tom Cruise. “They have a good relationship. Soon after the split, obviously, they didn’t. But they have managed to mend their relationship for the sake of Suri. Things are cordial right now.”

FYI: Katie is wearing Coach sunglasses.