The 27-year-old Washington state native was not present in court, but she could have been sentenced in absentia to 25 years in prison, had the court reached a different decision.
Knox's former boyfriend and co-defendant, Raffaelle Solecito, was also cleared on all charges. Solecito had faced a sentence of 25 years.
While most legal experts familiar with case predicted that Knox would be acquitted, a shocking last-minute turn of events threw her future into doubt.
It seemed as though Solecito may have been attempting to shift the blame to Knox, but reportedly, he maintained in court that he believes she is innocent, and that she had no motive to murder Kercher.
After several hours of deliberation, the court rendered its decision late this evening, and with that, Knox's long nightmare came to an end.
Knox is currently residing in Seattle, where she works in a bookstore and writes theater reviews for a local newspaper. Recently, Knox got engaged to Colin Sutherland, and the couple plans to wed later this year.
