Ice-T, whose real name is Tracy Marrow, 52, reportedly cursed at the officers asking "why the f**k" they were targeting him.
He was arrested and charged with his blonde model-actress wife, Coco, in the passengers seat.
The actor said that after moving to New Jersey and re-registering cars, neither he nor his wife were aware of his defunct driving status in New York State since 2008.
"It basically turned out to be a clerical error," he told reporters.
The veteran rapper, who plays a New York City detective on "Law and Order: Special Victim's Unit" joked he'd be headed to Disney World after the morning's courtroom victory.
"Ice did absolutely nothing wrong," said Eric Franz, Marrow's attorney.
According Franz, the DMV issue had been cleared up prior to Ice-T's court date Tuesday. They "reversed and rescinded the suspension," admitting they were wrong to suspend his driving rights, the lawyer said.