To give reception bully another chance

[childcraze]

My reception child had the first unfortunate experience with being bullied/teased by the old friend. This has eventually stopped (partially due to the help from school, parents, change in circumstances) but my child continues to be cautious with the old friend. There has been about 4 month since the teasing stopped.
Our families are quite close and so the kids tend to see each other at various social events, after-school clubs, etc. Both kids seem to be playing quite nicely when supervised but my child still keeps at a distance when they are alone.
This is a new territory for us and so I am not entirely sure what is the best action: do I support the cautious approach that my child has chosen or do I try to encourage giving the old friend another chance?
Of course I want my child to have resilience and be able to forgive but at the same time I don't want to cause any further trauma.

If anyone has any experience with similar situations please advise how it was handled and if you were happy with how it played out?

When you say that this stopped with help from parents, do you mean from you or the other parents? Honestly at this age they're so young and learning about social interactions that if the other parents are aware and supportive I'd gently encourage the friendship, especially in a group rather than 121 setting. If the other parents aren't then I'd continue with the cautious approach.

Be led with how your child behaves around the other child. If they want to make friends again they will, and it will happen naturally.
There might still be good reason why they are keeping their distance, your DC doesn’t have to like everyone.