Prince Harry and Meghan Markle's child Lilibet
Prince Harry and Meghan Markle's daughter Princess Lilibet Diana Mountbatten-Windsor. Photo: Reuters / MISAN HARRIMAN/ Reuters / MISAN HARRIMAN/

Meghan Markle was spotted on video cuddling her two-year-old daughter Princess Lilibet Diana Mountbatten-Windsor during a family day out. They joined Prince Harry and Prince Archie as they watched the Fourth of July parade in their Montecito neighbourhood.

A video of the parade released by Rosewood Miramar Beach on its Instagram page showed the Duchess of Sussex and her daughter waving to the passing vehicles. The former "Suits" star is seen dressed casually in linen trousers and sunglasses, as she crouches down next to Princess Lilibet, who looked adorable in a blue floral dress, white knee-high socks, and red shoes. The mother-and-daughter duo is seen with big smiles on their faces.

Prince Harry also briefly appeared in the clip dressed in a green shirt, jeans, and baseball cap chatting with the other men standing beside him. Although he is not in the footage, Prince Archie also watched the parade. He was seen in photos taken from the event shared online wearing a white shirt and jeans.

There were also pictures of the Duke of Sussex carrying Princess Lilibet as they watched the vehicles adorned with Independence Day-themed memorabilia pass by. There were vintage cars, emergency service vehicles, and cars in bright colors of yellow and pink festooned with balloons and the American flag.

The video that showed Meghan Markle with Princess Lilibet was captured from one of the vehicles taking part in the motorcade, a yellow vintage car decorated with blue, white, and red balloons. The clip was posted along with the caption, "A little Miramar magic for 4th of July! #RosewoodMiramarBeach #RosewoodHotels."

This is the second time the family joined the Fourth of July events. Except for Princess Lilibet, Meghan Markle, Prince Harry, and Prince Archie also watched the parade at Jackson Hole while in Wyoming to visit friends.

This is also the second time that Meghan Markle has been seen in public after the horrifying "near-catastrophic" car chase in New York City in May. Ahead of their sighting at the Fourth of July parade in their Montecito neighbourhood, she and the Duke of Sussex were spotted sharing a laugh and looking happy while outside an office in Santa Barbara, California.

She has kept a low profile since she and Prince Harry, along with her mother Doria Ragland, attended the Woman of Vision Awards at the Ziegfeld Ballroom in Manhattan on May 16. After the ceremony, they were chased by paparazzi en route to a friend's home where they were staying.

The chase reportedly started around 10:00 p.m. and it took two hours before they were able to shake the photographers off their tail. They had to switch vehicles and ride a yellow cab because they did not want to lead the paparazzi to their pal's house.

The couple was accused of staging a PR stunt with the chase which their publicist Ashley Hansen, called "abhorrent." She said, "Respectfully, considering the duke's family history, one would have to think nothing of the couple or anybody associated with them to believe this was any sort of PR stunt," she told Page Six, referring to Princess Diana's death in a car crash while being pursued by paparazzi in Paris in 1997.

A Sussex spokesperson said the chase "resulted in multiple near collisions involving other drivers on the road, pedestrians, and two NYPD officers."

Following the ordeal in NYC, Meghan Markle skipped a personal appearance at the Gracie Awards held at the Beverly Wilshire Hotel in Los Angeles on May 23. She was named a digital media national winner at the ceremony for her work on her "Archetypes" Spotify podcast. The Duchess of Sussex's sighting with Princess Lilibet, Prince Harry, and Prince Archie at the Fourth of July parade in Montecito comes after she and Spotify mutually agreed to part ways in June.