Abbi-Louise Maple and Rachel Marchant, both 21, had pleaded not guilty to outraging public decency and were due to stand trial at a crown court.
The case related to an incident in Worthing, West Sussex, on 16 July.
Miss Maple said she was pleased it had now been dropped. "It was just a little joke, one of those spur-of-the-moment things," she said.
She and Ms Marchant were on Worthing seafront when they exposed their chests, but it led to a CCTV operator calling the police.
"On seeing the camera they thought they'd give the operator a surprise"
The Crown Prosecution Service (CPS) had said they were charged because the incident took place near a children's play area and there were youngsters around at the time.
The pair denied outraging public decency during a hearing at Worthing Magistrates' Court on Wednesday, and they elected for a trial to be heard at Chichester Crown Court.
But the CPS said on Friday: "The Chief Crown Prosecutor, Sarah Jane Gallagher, in consultation with Sussex Police, has subsequently reviewed the case and she has decided that to continue would not be in the public interest.
"The case has therefore been discontinued."
Miss Maple reacted: "I'm happy. I just wanted it to be over, I didn't want a criminal record for that. It's embarrassing."
And the women's solicitor, Chris Chatterton, concluded: "On seeing the camera they thought they'd give the operator a surprise. I'm sure they have learnt a lesson from this."
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