Dixon was arrested in September for misdemeanor assault, but the McLennan County District Attorney's Office never filed formal charges against Dixon, and opted to have a grand jury review the case instead, the Waco Tribune-Herald reported.
After hearing the case, the grand jury voted not to have Dixon indicted.
According to the original police report, Dixon was at a friend's apartment, where he accused a 21-year-old man of breaking into his former apartment several months ago inside the same complex. The alleged victim denied Dixon's charge and laughed, at which point Dixon was accused of punching the man several times.
Baylor coach Art Briles never suspended Dixon, who was named an Associated Press second-team All-American this week.
Dixon and the Bears take on Central Florida in the Tostitos Fiesta Bowl on Jan. 1.