The Knicks owner sure hopes so ... 'cause Dolan is calling for peace after Oak's lawsuit against him was dismissed on Wednesday.

Of course, Oakley sued Dolan and Madison Square Garden back in 2017 after Dolan sent security to physically remove the Knicks legend from the arena. He was dragged out and arrested in a wild scene captured on video.

Oakley sued for defamation, assault and false imprisonment claiming he was unfairly targeted by Dolan over unflattering public comments he made about the state of the Knicks.

At the time, MSG staffers claimed Oak was drunk during the incident -- which Oakley vehemently denied.

But, Dolan claimed victory on Wednesday when the federal judge ruled Oakley's case was weak and ultimately dismissed the lawsuit.

The judge explained his decision, saying, "From its inception, this case has had the feel of a public relations campaign, with the parties seemingly more interested in the court of public opinion than the merits of their legal arguments."

"That is perhaps understandable, given the personal and public nature of the dispute."

"But while basketball fans in general, and Knicks fans in particular, are free to form their own opinions about who was in the right and whether Oakley’s ejection was motivated by something more than the whims of the teams owner, the fact remains that Oakley has failed to allege a plausible legal claim that can meet federal pleading standards."

The Knicks released a statement on the dismissal ... saying, "We thank the court for its ruling. This was an incident that no one was happy about. Maybe now there can be peace between us."

So, will Oak and Dolan REALLY bury the hatchet???