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Murray Spencer Robertson, 59, appeared briefly today in Brisbane Magistrates Court where the prosecution said it had no evidence to offer.
The three charges of child-stealing were subsequently dropped.
Mr Robertson declined to comment outside court.
Police alleged Mr Robertson took his three children - daughters Bokkie, 10; Matilda, 9; and son Barney, 7, from the Wooloowin home of his estranged wife Philippa Yelland early on May 17.
They were found a few hours later at a grocery store at Nambour on the Sunshine Coast and returned to Ms Yelland.
The children disappeared in March during a visit to Mr Robertson's home in the Blue Mountains, west of Sydney.
Following a nationwide appeal, they were found with him six weeks later in Tasmania.
No charges were laid over that incident.