Mudiwa appealed against his conviction and sentence last week, and appeared in court yesterday where he won his freedom.
Mudiwa is accused with two other MDC supporters of kidnapping a 12 year-old girl in his constituency in 2007. He was sentenced to seven years in prison by Magistrate Hlekani Mwayera.
Two and a half years of the sentence were wholly suspended on condition of good behaviour.
Mudiwa challenged the sentence and was granted bail by the same magistrate.
The incarceration of Mudiwa and seven other MDC MPs facing trumped-up charges are part of a well-orchestrated campaign to intimidate and frustrate the MDC, analysts say.
Senior MDC officials say the Cabinet boycott last week was also aimed at protesting the jailing of MDC legislators.
The MDC says there are residual elements in Zanu-PF and in the inclusive government who want to scuttle the new political dispensation.
MDC officials claim the so-called hardliners are bent on frustrating the MDC and whittling down its majority in Parliament.
The MDC is the majority party in Parliament and the largest political movement in the country after it garnered 100 seats in the House of Assembly in the 29 March 2008 harmonised elections against Zanu-PF's 99.