The prosecution failed to persuade a judge at Oxford Crown Court who heard the case in chambers to overrule Friday's decision by magistrates to grant her bail.
Her step-father Alan Carter said that the family were relieved that she would be with them over Christmas.
Ms Andrews had been held at Eastwood Park women's prison near Gloucester after the prosecution challenged the magistrate's decision.
She is charged with murdering Mr Harvey on 1 December. He died from almost 40 stab wounds in an isolated country lane near the couple's home in Alvechurch, Worcestershire.
Ms Andrews, who was charged last week, denies the charge and has said her boyfriend was killed in a "road-rage" incident by a man who was a passenger in a Ford Sierra. A condition of the bail is that she will go to her parents' home in Alvechurch.
Ms Andrews' solicitor, Tim Robinson, said she would be spending Christmas with her family and daughter.
He said a significant new witness in the case had come forward, following stories in the press.
"She is grateful to members of the press for the response to the appeal which has been made. Already one very significant witness has come forward," he said. Ms Andrews is due to appear again before magistrates on 14 February.
Mr Carter, married to Tracie's mother Irene, said: "We are just so relieved that she is coming home."