Their feud started when Kings of Leon turned the show down when they asked if they could use their track Use Somebody.
Murphy was not impressed with the snub and said 'f**k you, Kings of Leon' in an interview.
One of the band's members, Caleb Followill, then explained how the band often turned down TV licensing requests and said it wasn't personal.
But bandmate Nathan Followill then added more fuel to the argument by telling Murphy to 'buy a new bra' on Twitter. Murphy was not impressed with that comment claiming it was 'homophobic'.
Paltrow then intervened after guest-starring in the show herself and helped organise a number of text messages between the parties where both apologised.
A source told The Hollywood Reporter: 'It's all good now.'