Terry Kennedy is officially a free man ... the famed skateboarder is out on parole just over three years after he was convicted of assaulting a fellow skater -- an incident that led to the man's death.
TMZ Sports broke the story last month ... the Illinois Department of Corrections told us Kennedy -- known by fans as "Compton-Ass Terry" -- was eligible for parole and set to be released on New Year's Eve.
True to the plan, Kennedy, according to inmate records, was released from custody on December 31.