Reese Witherspoon is thrilled to have her new baby boy back home.

The Water for Elephants actress welcomed baby Tennessee James - her first child with talent agent husband Jim Toth - on September 27 but they only returned home from the hospital in recent days. "Everyone is bonding with the baby. And Jim has had a lighter workload and has been spending a lot of time at home with the baby as well. She definitely feels settled in her family life with Jim and her kids. They can't wait to start life with their baby," a source said.

Reese was spotted dining out with the newborn at Huckleberry Bakery and Cafe on Wednesday in Santa Monica, California. Her husband Jim - whom she married in March 2011 after a year of dating - was not nervous about becoming a dad for the first time. "He was just over the moon and really excited to become a dad," another source said.

The 36-year-old actress - who has two children, Ava, thirteen, and Deacon, eight, from her marriage to Ryan Phillippe - spent a couple of days in a Los Angeles medical facility prior to Tennessee's birth after it was feared she was going into early labor.