Walther's decision to hold the children in custody was overturned by the 3rd Court of Appeal in Austin. The Texas Supreme Court on Thursday upheld that decision, ruling that the state overstepped its authority when it took the children away. The court found that there was not enough evidence that they were in immediate danger of abuse to justify keeping them in custody.
The court ordered Walther to reverse her decision, though it allowed her to take other steps to protect the children.
ABC News' Neal Karlinsky and Ren Holding contributed to this report.