Mischa Barton is "doing great" and preparing to begin filming on The Beautiful Life, according to the show's creator Ashton Kutcher.

The actress was hospitalised for psychiatric observation in California last week, after suffering a meltdown and calling cops to her Los Angeles home the night before.

Barton's place on Kutcher's new series was thrown into jeopardy following the incident, with internet gossips alleging TV bosses were making plans to continue production without her.

But Kutcher has denied reports Barton will be replaced, announcing she will soon fly to New York to join the cast of the show, about a group of models.

Speaking at a technology conference in Pasadena, California on Friday (24Jul09), Kutcher said, "I can tell you right now Mischa Barton is doing great."

The 23 year old is set to play Sonja Stone, a catwalk beauty addicted to pills, on The Beautiful Life, which is scheduled to start filming on July 31, 2009.