Reynolds, who had two children -- Carrie and Todd Fisher -- with her late ex, opened up about her relationship with Taylor before and after she stole Eddie more than five decades ago.
Eddie died at the age of 82 in 2010.
"We were friends for years and years," Reynolds told People magazine. "but we had a lapse of time when she took Eddie to live with her because she liked him, too. She liked him well enough to take him without an invitation!"
Reynolds said before that time period in the early 1960s, she and Taylor were close and their relationship as friends began when the two went to school together at MGM.
"I went to MGM when I was around 17, and Liz was there too, but she was already a star," the "Susan Slept Here" star, 82, added. "We went to school together on the lot, when she was in between films. I was just a beginner, and she and I were not in any manner alike, but we got along very well because I was in awe of going to school with Elizabeth Taylor."
Reynolds will be honored this Sunday at SAG with a lifetime achievement award.