The 38-year-old - known as "The Muscles from Brussels" - was arrested in the early hours of Thursday on Sunset Boulevard in West Hollywood.
The Belgian actor spent five hours in a cell at West Hollywood police station before being released.
After his release, Van Damme got into a car and was driven away without making any comment.
Drink-driving suspects are usually held until their blood-alcohol level reaches a legal level. Police say their investigation is ongoing.
The former European middleweight karate champion, whose latest movie is Universal Soldier: The Return, shot to fame as an action film star in the mid-1980s.
His movie credits include Bloodsport, Kickboxer, Double Impact, Hard Target and Sudden Death, Street Fighter and Cyborg.
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Van Damme, who has battled drug addiction in the past, has been married five times - twice to his present wife Gladys Portugues .
Hollywood veteran Jack Nicholson is another star in trouble over his driving.
Two people have filed a personal injury claim against him seeking damages for a head-on collision with his Mercedes on 8 July.
BMW Z3 driver Attila Henry Hegedus, 23, and passenger Olga Kharitonovich, 20, claim the 62-year-old star was driving too fast and want compensation for injury, lost wages, hospital bills and damage to their car.
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