The mom-of-two has gone out of her way to prove that over the past few years via the release of her memoir Love, Pamela and a Netflix documentary.
The source said the personal projects have allowed the 56-year-old to feel "like she’s finally getting the respect she deserves."
Her new sense of pride also comes from embracing her true self, as the source claimed the 2019 death of her makeup artist Alexis Vogel prompted Anderson to ditch her usual vixen and glam appearance.
"Getting dolled up was part of her image for so long, but it wasn’t really her, and she was happy to ditch it," the insider explained. "Pamela has learned to embrace her natural beauty and she feels like the real Pamela is shining through."
Anderson is also getting back to her roots, as she's currently staying on Vancouver Island in Canada, her home country.
"It saved her life. It felt so good to get away from Hollywood," the insider shared of the move. "She loves being close to nature."
Though the mom-of-two has endured five failed marriages, the source said she's still "a hopeless romantic."
"If someone comes along, she’s all for it. But she’s all about living in the moment," the source added.
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As of now, it's unclear if she'll ever return to acting after feeling sexualized in several roles.
She also had a negative experience as a guest star on Home Improvement, revealing Tim Allen once flashed her on set.
"On the first day of filming, I walked out of my dressing room, and Tim was in the hallway in his robe," Anderson wrote in her book. "He opened his robe and flashed me quickly — completely naked underneath."
"He said it was only fair, because he had seen me naked," she spilled.
The actor, 70, denied her allegation, telling a news outlet "it never happened" and he would "never do such a thing."
After the situation stirred countless headlines, the blonde beauty cleared the air and said there weren't any hard feelings.
"Tim is a comedian, it’s his job to cross the line. I’m sure he had no bad intentions," she noted. "Times have changed, though. I doubt anyone would try that post #MeToo. It’s a new world."
Her words didn't do much to make Allen feel better. "She was a great co-worker, I'll tell you that. She's a fun girl," he told a reporter. "Everybody loved her, but everybody at ABC is a little disappointed in her… memory, put it that way. All of us at Disney/ABC, really."