Police will take no action against Bowman backbencher Andrew Laming, who was accused of taking an inappropriate photograph of a woman while she was bending over.
A number of people were interviewed as part of the investigation and a Queensland police spokesman said detectives found no evidence to indicate an offence had been committed.
"Investigators, having considered the interviews and all other information considered as part of the investigation, have determined there is no evidence to indicate a criminal offence," a QPS statement said.
The woman involved in the incident lodged a formal complaint, and police said she has been advised of the outcome.
Mr Laming told the Redland City Bulletin last week that the woman had been wearing shorts despite his facing upskirt allegations.
He said today: "I thank Queensland Police for their prompt assessment yesterday, that this complaint revealed no offence, and they have decided to take no action.
"I have commenced courses and counselling, not just to be a better MP, but to be a better father, husband and community member."
He would make no other comment but it is understood Mr Laming is considering legal action.
Mr Laming has also been accused of - and has admitted to - harassing two female constituents and is on leave to undergo empathy training at the request of Scott Morrison.
Pressure continues to mount on Prime Minister Scott Morrison to expel the LNP MP from the coalition.
Former prime minister Malcolm Turnbull said Mr Laming's position in the coalition party room was untenable.
He compared the circumstances to the handling of a rape allegation against NSW state MP Michael Johnsen.
Mr Johnsen was booted from the coalition party rooms after the allegations came to light.
Mr Turnbull said the same approach must be taken towards Mr Laming.
"It's pretty obvious that he should be sitting on the crossbench," Mr Turnbull said.
"His behaviour is so out of order."
Mr Johnsen has since resigned from Parliament, after further allegations this week that he had invited a prostitute to visit him inside state parliament.
Australian Associated Press