Sean Aspey has apologised for any offence his fancy dress caused
A Liberal Democrat town councillor who dressed as a Nazi officer for a fancy dress birthday party will face no further action from his local party.
Sean Aspey was suspended but Bridgend party officials said the incident had been taken out of context.
The images of the Porthcawl town councillor were later posted on the social network site, Facebook.
A Lib Dem spokesperson said Mr Aspey was a hard working councillor and had been reinstated and had apologised.
"Allegations were made in the local and national press that Cllr Aspey had acted inappropriately by posting photographs of himself dressed as a Nazi on the Facebook website," said the party spokesperson.
"As always such allegations are taken very seriously by the party and we took the decision to impose a temporary suspension until such time as we could investigate further.
"We have now concluded that investigation and found no case for further action."
Party officials said the whole incident had been taken out of context in a combination of "political mischief making" and inaccuracies in some press reports, making the matter "appear sinister when it fact it was not".
Mr Aspey had donned the uniform as part of a private party themed on the popular sit-com 'Allo Allo'.
"Sean Aspey has apologised if he inadvertently caused offence to anyone," added the party spokesperson.
"He is a hard working town councillor and an asset to the community and the party."