The duo were joined by Lovato's pal Matthew Scott Montgomery for the "Space Jam: A New Legacy Party In The Park After Dark" event.
The 28-year-old and the "All Three" singer have been spending a lot of time together after they collaborated on "Easy" for Lovato's album Dancing with the Devil... the Art of Starting Over.
The outing also came after they performed the song together for the first time with the Trans Chorus of Los Angeles during YouTube's Pride 2021 event.
"Thank you @noahcyrus for closing out the night w me for @youtube’s pride 2021 celebration 🎊🙏🏼🙌🏼 I’m so happy we finally got to sing our song together 💞#Easy," Lovato gushed on Instagram afterward.
"thank you for having me ❤️❤️❤️ yiu [sic] were effortlessly perfect and im never not in awe of u 😢😢😢," the 21-year-old replied in the comments.
"proud and honored to have performed 'Easy' for @youtube’s #pride2021 event alongside @ddlovato and the @transchorusla," Cyrus shared on her own page. "Demi, thank you for having me. I’m so proud of you and who you are. HAPPY F**KINNNGGGG PRRIIIIIIDE to ALL my lgbtq+ brothers and sisters, you have my endless love and support forever n always ❤️💛💚💙💜."
"They’re very close and have been hanging out," one source told Page Six, with another saying that the rumor was "weird" and that "they’re not dating."
"They have dinner sometimes, but they’re not romantic," the source clarified. "They got together for this song that sorta came together a bit last minute, and they hang out."
Lovato came out as non-binary in May and said that the realization came after healing and self-reflective work. The "Sober" singer admitted it's what best "represents the fluidity I feel in my gender expression and allows me to feel most authentic and true to the person I both know I am and still am discovering."
In a recent interview with Audacy, the Disney alum praised their family for using the right pronouns, which are they/them.
"My family has done an incredible job… I’ve noticed [sister] Dallas using them and they and it really does warm my heart up that people are trying," Lovato said. "My friends have had a little harder time to get used to actually."