The 22-year-old make-up mogul and Travis, 28 - whose daughter, Stormi, was born in February 2018 - came together for the annual holiday, with Travis being invited by Kylie's family on a trip to Palm Springs.
An insider told E! News: ''They all stuck together at one table before Khloe [Kardashian] went over to join her friends for a game.
''Kylie and Travis then got up together and got drinks. They were strolling slowly, watching some of the table games, and were followed by Kylie's security.''
Kylie and Travis split in October - but rumours have subsequently suggested that the high-profile duo may be about to rekindle their romance.
The eyewitness added: ''They seemed very close. There was no PDA or anything romantic, but they seemed happy to be together. They whispered in each other's ears a lot and laughed.
''They were having a good time. They all headed back to Kris's house for the night.''
Meanwhile, a source recently claimed that Travis ''still loves'' Kylie.
Travis - who dated the brunette beauty for two years prior to their much-discussed split - reportedly still has feelings for the 'Keeping Up with the Kardashians' star, although he thinks their romance was a case of ''too fast too soon''.
Explaining Travis' outlook on their romance, the insider explained: ''[He] feels that their relationship was too fast too soon.
''He loves her, but he wanted to be able to live his life and travel and be with other people and not have to worry about always going back to his family.''
Ahead of their upcoming tour, and prior to the release of their long awaited album, Smoke Fairies played a great warm-up gig at Elsewhere in Margate.