Meryl Streep and Martin Short Had a 'Blast' Out at Dinner Together After Romance Denial (Source)

The 'Only Murders in the Building' costars were photographed enjoying a dinner out with friends Wednesday in Santa Monica, California

It's only good times in the building when Martin Short and Meryl Streep get together!

Short, 73, and Streep, 74, stepped out for dinner with friends Wednesday at Giorgio Baldi in Santa Monica, California, and now a source has shared on-the-scene details about the dinner with PEOPLE.

“They were really enjoying their meal and having a blast the whole time,” the onlooker says of the longtime friends and Only Murders in the Building costars.

The source notes that there was “lots of laughing” and adds that the group “couldn't have been having a better time.”

Related: Martin Short and Meryl Streep Are All Smiles Leaving Dinner Together After Denying Romance Rumors

Indeed, Short and Streep were all smiles as they left the L.A. area Italian hot-spot earlier this week. For the night out, the Devil Wears Prada star winner wore black pants, a hot pink button down and red jacket, while the Three Amigos alum sported a gray sweater and black blazer.

Their outing comes after Short shut down speculation that surfaced online last month that the pair was romantically involved.

Related: Martin Short Denies Meryl Streep Dating Rumors: 'We're Not a Couple'

At the time, rumors began to swirl that the costars were dating after fans pointed out that they appeared to be close to one another at the Golden Globes in January, but a rep for Short confirmed to PEOPLE shortly after the award show that the pair "are just very good friends, nothing more."

Short himself also denied that he and Streep were dating on an episode of Bill Maher’s Club Random podcast in late January. When the host, 68, joked about the gossip, the comedian responded: “We’re not a couple, we are just very close friends.”

Related: Everything to Know About Only Murders in the Building Season 4

Short was married to actress Nancy Dolman from 1980 until her death from ovarian cancer in 2010. The pair share three children together: Katherine Elizabeth, 40, Oliver Patrick, 37, and Henry Hayter, 34.

Meanwhile, PEOPLE confirmed in October of last year that Streep had separated from her husband of 45 years with whom she shares four children: Henry, 44; Mamie, 40; Grace, 37, and Louisa, 32.

A representative for Streep told PEOPLE in a statement at the time, “Don Gummer and Meryl Streep have been separated for more than 6 years, and while they will always care for each other, they have chosen lives apart.”

The forthcoming season of Only Murders in the Building will see Short and Streep reunite on screen. The star — who joined the cast in season 3 as theater actress Loretta Durkin who became the love interest of Short’s Oliver Putnam — was confirmed to reprise her role earlier this month.

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The first three seasons of Only Murders in the Building can be streamed in full on Hulu.

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