Katie Holmes runs into Ethan Hawke on her way home in New York City on October 11, 2012. Credit: Elder Ordonez/INFphoto.com

The Big Apple really is just another small town!

On Wednesday, Katie Holmes, -- who's hard at work rehearsing for her Broadway show Dead Accounts -- took a stroll near her apartment in NYC's Chelsea area when she bumped into a boldface neighbor: Ethan Hawke!

The actress and designer, 33, stopped to chat with Hawke, 41, who sat on a stoop with Indiana, his 14-month old daughter with second wife Ryan. Holmes, now a single mom to Suri, her 6-year-old with ex-husband Tom Cruise, cooed over little Indiana -- whose siblings are Clementine, Ethan and Ryan's 4-year-old, plus Maya, 13, and Levon, 10, Hawke's daughter and son with first wife Uma Thurman.

(Holmes and Hawke have yet to work together.)

Holmes, wearing a baggy white turtleneck sweater, jeans, and little-to-no makeup, was photographed later that day in an even more unguarded moment: Riding the subway! Like any other New Yorker, the Holmes & Yang designer kept to herself during the ride, wearing her sunglasses and checking out her phone.

On Friday, Holmes was a bit more glammed up -- but still casual -- at an event promoting Dead Accounts at Sardi's eatery in NYC.

"Katie is in a great place," a source tells Us of the star, who finalized her divorce from Cruise, 50, last month. "She's an amazing woman who has gone through a lot. She’s happier than before and dotes on Suri."

Of her return to Broadway (she debuted onstage in 2008's revival of Arthur Miller's All My Sons), "Katie is so excited," the source adds.