The famously secretive couple were spotting getting super cozy and romantic on Labor Day.
Jamie Foxx and Katie Holmes looked super adorable catching some twilight sun in the sand in Malibu, California, on Monday.
The stars have been a rumored couple for years, but they have typically kept their romance pretty private. However, the super secretive pair were spotted holding hands and smiling like love birds while dipping their toes in the warm waters of the surfing hotspot in the early evening.
Holmes, 38, wore a billowy blue and white patterned dress while Foxx, 49, strolled across the beach in exercise pants and a dark T-shirt. The stars both rocked wide-brimmed fedora-style hats and dark shades.
An eyewitness tells ET, "The pair were on a public beach in Malibu. They were visiting a friend's house and came out onto the beach for a walk around 7 p.m."
The happy twosome chatted and smiled for 20 minutes as they watched the sun start to set, according to the eyewitness, who says that they "also sat down very close to each other, chatting for a while outside, and spoke rather intimately."
The eyewitness added, "Katie and Jamie seemed to be pretty cautious about being spotted together, but were having fun. They seemed to really appreciate every moment together because Jamie did not leave her side. They held hands as they walked on the beach and seemed really relaxed and playful."
"They were splashing around and dancing in the water with their clothes on. They looked like a pair of young kids in love," the eyewitness continued. "Katie looked great. She appeared to be enjoying herself and looked happy. Jamie also looked to be enjoying himself, carefree, and seemed really in love. At one point he was filming Katie as she danced around on the beach."
After their beach-side frolic, the pair went back into the house, where there was a small gathering of friends. Holmes' 11-year-old daughter, Suri, did not appear to be present.
This sweet Labor Day outing marks the first time Foxx and Holmes have freely shown any PDA out in the open since they were first romantically linked in 2013.
A source tells ET that the cute couple are very happy. The Lucky Logan actress has spent time at Foxx's massive L.A. property and has been very sweet to workers and guests. Holmes' daughter has also been to the home, and has fun playing with Foxx's 8-year-old daughter, Annalise.
Foxx seems very romantic, the source notes, adding that the actor has performed many sweet gestures for Holmes, and they enjoy being outdoors, watching the sunset and taking in the view together.
Despite how adorable they are as a couple, both stars have frequently denied dating rumors in the past. In 2013, ET's Nancy O'Dell spoke with Foxx and asked about reports of their romantic connection, which he roundly rejected.
"[The rumors] are one hundred percent not true. In fact, it's quite hilarious because we simply danced at a charity event along with a lot of other people," the actor and musician said at the time.
Over the last few years, however, the two have been spotted together on several occasions, including at a romantic dinner date in New York City in April. For more on the reclusive love birds, check out the video below.