Skateboarder Terry Kennedy Released From Prison Years After Fatal Incident

Terry Kennedy is officially a free man ... the famed skateboarder is out on parole just over three years after he was convicted of assaulting a fellow skater -- an incident that led to the man's death.

TMZ Sports broke the story last month ... the Illinois Department of Corrections told us Kennedy -- known by fans as "Compton-Ass Terry" -- was eligible for parole and set to be released on New Year's Eve.

True to the plan, Kennedy, according to inmate records, was released from custody on December 31.

Kennedy was found guilty of two counts of aggravated battery and sentenced to five years in prison in late 2022 for his role in a violent July 2021 altercation that ultimately claimed the life of skater Josiah Kassahun.

Terry was also charged with first-degree murder, but was acquitted by the judge during his bench trial.

Kennedy -- who competed in the X Games and Malook Money Cup -- isn't totally free and clear ... he's still on parole until June 30, which was initially set to be his release date.