Rocky Russo, 35, left the Victorian Supreme Court with his lawyer on Thursday afternoon after a jury acquitted him of the murder of Matthew Salau.
They also found him not guilty of the lesser charge of manslaughter.
Russo went to Mr Salau's home in Melbourne's southeast to stop him threatening a female friend over a $5000 debt, the jury was told at the start of the trial.
Prosecutors alleged Russo brought a knife to the June 2024 confrontation and he murdered Mr Salau by intentionally stabbing him to the chest and back.
Russo argued he was not guilty of murder, that Mr Salau was the one to produce the knife and he only stabbed the 30-year-old while defending himself.
The jury was told two days before the stabbing, Mr Salau went to the home of Russo's female friend, demanding $5000 he was owed.
He returned the next day with a large meat cleaver, once again making demands for the money and followed up the visit with a series of threatening texts.
The woman told Russo about the demands, and he and another man went to Mr Salau's Frankston home to confront him late on June 10, 2024.
Prosecutors said during the altercation, which lasted four minutes and 21 seconds, Russo stabbed Mr Salau with a knife to the chest and back.
In his police interview, Russo said Mr Salau produced the knife during the argument, and swung it at him but it hit the table and fell to the ground.
He told officers he picked it up and Mr Salau struck him to the head so he swung back at him in return, forgetting he was still holding the knife.
Russo said Mr Salau was still conscious and agreed to stop harassing the woman before he left the scene shortly after 11.30pm.
Prosecutors argued Russo attended the property armed with the knife and he stabbed Mr Salau with the intention to kill or cause really serious injury.
But the jury rejected those claims, instead finding Russo not guilty of both murder and manslaughter.
Mr Salau's sister broke out into loud sobs after the verdicts were delivered on Thursday morning.
She declined to speak to media as she left the court precinct.
Russo, who was in custody throughout his three-week trial, walked free from court shortly before 4pm, supported by his barrister David Cronin.
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