Ariana Grande and Ethan Slater Are 'Full-On Dating' After Being 'Sweet' with Each Other on Set: Source (Exclusive)

"They were often seen laughing together," a set insider told PEOPLE

Ariana Grande and Ethan Slater's friendship was "obvious" on the set of their movie Wicked.

An insider told PEOPLE that it was clear from the start that the "7 Rings" singer, 30, and the Broadway alum, 31, were forming a close connection.

“It was obvious on the set from early on ... they were very sweet to each other and often seen laughing together," the source said.

But it seems the cast and crew thought it was a friendship vibe, not the budding romance it turned out to be. "Everyone just thought they were both happily married though and didn’t expect them to end up dating," the insider added. (A second source told PEOPLE the two did not get together romantically until both were each separated from their spouses.)

Now, the first insider said, the two costars are "full-on dating," and Grande "really likes" Slater.

However, another source told PEOPLE that the situation has been hard for Slater's wife, Lilly Jay. The pair, who married in November 2018 and welcomed a child together last year, are currently separated, with Slater reportedly filing for divorce Wednesday, per TMZ.

"They were together for so long; they met when they were in high school. They were inseparable. It’s devastating for Lilly," the third source said.

Related: Ariana Grande's Ex Dalton Gomez 'Was Committed to Making It Work' — but She'd 'Moved On': Source (Exclusive)

Grande, meanwhile, separated from her husband, Dalton Gomez, earlier this year following nearly two years of marriage, the second source confirmed to PEOPLE, saying the pair "have been quietly and lovingly working on their friendship" since then. The singer was spotted without her engagement ring and wedding band while enjoying a day at Wimbledon on July 16.

Following news of the couple's separation, a fourth source offered insight into what went wrong, telling PEOPLE, "Dalton is very religious and was committed to making it work, but Ariana had moved on."

Distance was also a factor. Grande has been in the U.K. filming Wicked, while Gomez, 27, remained in California, where he works as a luxury real-estate agent.

"She was happy in Los Angeles for a couple of years. She wanted to make a life there with Dalton," the first insider told PEOPLE. "He is super focused on his career and needs to live in Los Angeles. It's definitely been an issue for them."

They continued, "Dalton's career is demanding and he can't leave Los Angeles often. So when [Grande] started filming Wicked in England, they were in for a long-distance marriage."

Related: Watch Ariana Grande's Boyfriend Ethan Slater's Performance as SpongeBob SquarePants

Though the relationship eventually "didn't work," the source added, "Ari has nothing but kind words to say about Dalton. During their marriage, he was her No. 1 fan."

Grande is set to play Glinda in Universal’s film adaptation of the beloved Broadway musical, while Slater will play Boq, the love interest of Elphaba’s sister Nessarose.

The movie began shooting in the U.K. last year and was scheduled for release in November 2024, though it remains unclear if the SAG-AFTRA strike will affect its premiere.

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