Lil Baby will NOT be prosecuted after being arrested in Sin City and charged with carrying a concealed firearm without a permit ... TMZ has learned.
According to new legal docs, obtained by TMZ, the felony charge the rapper was facing as a result of his August arrest has been dropped.
The docs make it look like the Clark County District Attorney is declining to press charges.
TMZ broke the story ... Lil Baby was busted after cops claimed they saw video of him being passed a gun inside Encore Las Vegas. Police showed up at the resort, investigated, and arrested the rapper.
At the time of his arrest, Lil Baby claimed he had a permit from the state of Georgia for concealed carry, but we were told Nevada doesn't recognize concealed-carry permits from Georgia.
Looks like it's all water under the bridge now ... and Lil Baby's looking like the rare Vegas winner.
In a statement to TMZ, Lil Baby's lawyers Drew Findling and David Chesnoff said -- "We'll let the court record speak for itself."