When the case was called before Resident Magistrate Simone Maddix, the complainant told the court she had no further interest in the matter.
Defence attorney Peter Champagnie made a no-case submission which was upheld by the Crown.
The entertainer was charged after it was reported that he sexually assaulted the underage complainant.
He made numerous appearances and maintained his innocence throughout.
Smith, who was once a part of the Portmore Empire, is responsible for several songs among them his top hit Gussy Clarke.
The allegations before the court are that in July 2008, Smith was charged by the Waterford police for having sexual relations with a minor.