The two Silicon Valley giants announced that they will continue competing with each other based on the quality of their products rather than their lawyers.
A Google spokesman said: "Our companies compete vigorously, but we want to do so on the merits of our products, not in legal proceedings.
"As a result, following our patent agreement, we've now agreed to withdraw regulatory complaints against one another."
Microsoft said the move reflected "changing legal priorities" but insisted the companies would continue "competing vigorously."
The truce comes just days after the European Union opened a new anti-trust battle with Google which addresses the concerns that the Alphabet company has been abusing the dominance of its Android mobile operating system.
Google has been accused of imposing restrictive contracts with the makers of tablets and phones forcing them to install its search and Web browser on new hardware.
However the companies insist that the truce is unrelated to the European development.
Microsoft chief executive Satya Nadella is reportedly focused on collaborating with Google over their differences and is keen to open more channels of communication between the two parties to avoid legal disputes over patient issues.
This marks a shift from prior strategies against Google, such as making a collaborative pact with Apple to make versions of its Office programs available on iOS.
Google and Microsoft have both endured a difficult start to the year on top of the difficulties which have emerged from their disputes. Last week the companies simultaneously posted worse than expected quarterly earnings for the January-March period.