Khanna was admitted to Lilavati hospital in suburban Bandra on July 14, a few days after he was released from the same hospital.
"He is fine now. He got discharged this afternoon at around 1.30 pm," hospital sources told PTI.
Khanna's son-in-law and actor Akshay Kumar had come to meet the 69-year-old actor this morning.
His estranged wife, actress Dimple Kapadia, and daughter Rinkie had been by his side all the time, since his admission to the hospital.
"He is much better now. He is having liquid food like juice and milk-shake," sources close to the actor told PTI.
Earlier on June 20, it was reported that Khanna, who is fondly called 'Kaka', had stopped taking food. But the next day, he emerged at the balcony of his home 'Aashirwad' on Carter Road in Bandra and waved to his fans.
Soon after, on June 23, Khanna, was admitted to Lilavati hospital due to exhaustion and weakness. He was discharged on July 8.
Earlier in the month of April, he was admitted to the same hospital for a few days after he complained of uneasiness and exhaustion.
Khanna is hailed as India's first superstar after 15 consecutive solo superhits between 1969 and 1972, including 'Aradhana', 'Haathi Mere Saathi', 'Anand' and 'Amar Prem'.
Khanna had recently appeared in his first TV ad for Havell's fan.
