Blake Lively Was 'Nervous' to Return to Spotlight at SNL 50th amid Legal Battle but Had 'Great Time' (Exclusive Source)

Blake Lively stepped out for a red carpet comeback as her legal battle with Justin Baldoni continues.

The actress attended the star-studded live taping of SNL50: The Anniversary Special in New York City on Sunday, Feb. 16.

Lively and husband Ryan Reynolds arrived with her Another Simple Favor director Paul Feig as the couple marked their first joint public appearance since she sued her It Ends With Us costar Baldoni.

"They had a great time," a source tells PEOPLE. "It was nice getting out of the house and being around friends and familiar faces."

The source adds that Lively, 37, was "nervous" to return to the spotlight but still "excited to be out with friends and support Saturday Night Live" for its milestone anniversary. (Lively hosted the sketch series in 2009.)

"They stayed after the live show wrapped and mingled in the studio and were talking with everyone from Ben Stiller to Paul McCartney," says the source. "They spent time talking with Tom Hanks and Rita Wilson too. Blake also chatted with Dakota Johnson."

Lively also hugged Amy Schumer as they caught up at the event, as seen in video shared on social media. The source says, "It sounded like she was lending support," after Schumer previously shared an "I believe Blake" message online in December.

During the SNL50 special, Reynolds, 48, participated in a bit from the audience as Lively sat beside him. Before a larger gag about the Coneheads, Reynolds seemingly made a joke about the headline-making legal battle with Baldoni, 41.

When Reynolds stood up to ask a question, Tina Fey asked him, “How’s it going?” The actor quickly responded, “Great, why? What have you heard?” as the audience laughed.

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In December, Lively sued Baldoni, accusing him and others of sexual harassment and a retaliatory smear campaign, which he denies. He countersued Lively, Reynolds and their publicist in January, alleging defamation and extortion. Her lawyers called his lawsuit "meritless."

Lively's next film, a sequel to 2018's A Simple Favor with Anna Kendrick, is set to open the 2025 SXSW Festival on March 7 in Austin, Texas.