Sharing a snap on Instagram, Newton-John said: "First time in costume since we made the movie!"
John Travolta and Olivia Newton-John channeled their inner Danny Zuko and Sandy Olsson for a movie sing-along event in West Palm Beach, Fla. on Friday night.
Newton-John was stunned, however, when the jacket was returned to her once more.
John Travolta and Olivia Newton-John have dressed up as Danny and Sandy for the first time since they filmed Grease over 40 years ago.
The leather jacket fetched 243,300 United States dollars (£185,000), only for the anonymous buyer to hand it back to a "grateful" Newton-John.
Earlier in the week, it was revealed that Olivia was presented with another piece of her Grease wardrobe - her leather jacket!
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During the event, Newton-John, 71, and Travolta, 65, wore a number of outfits inspired by the popular costumes they wore in the 1978 film.
Travolta also posted a series of photos from backstage at the event.
"This is the most lovely present", she added, "but mainly it's your heart that I'm grateful for".
Newton-John recently sold the leather jacket she wore in Grease for charity - only for the buyer to return it.
After getting over her initial shock, Newton-John tearfully thanked the man and gave him a hug, saying: "You're the best, you're the best!"
"With more and more people affected by cancer every day, I believe we are in a world desperate for healing, and I'm committed to doing whatever I can to help".