The New Zealand golfer Lydia has retained her number one world ranking finishing in a three way tie for second at the latest LPGA event in Hawaii.
Ko was tied for 7th heading into the final round and posted the round of the day with an eight under par 64 to finish three shots behind the winner American Christie Kerr.
The result is a major confidence boost for Ko who has struggled for form this year after a change of coach, clubs and swing.
"Considering where I was after the first day (of this tournament) I'm pretty pleased with where I've finished."
After a first round one over par 73 Ko was in danger of missing the cut but she recovered with a three under par second round and kept on improving but gave herself little chance of winning on the final day.
"I just wanted to give myself as many opportunities as I could and with the wind not being as high and as strong compared to the other days I knew that the birdies were out there and especially with the way the girls are playing you know you need to make a fair amount of birdies," said Ko.
"Going into today being eight shots behind, that's a very big gap on a course like this where everyone is playing well ....and obviously to finish with a birdie on the 72nd hole is not a bad finish," she said.
The tournament marked Ko's last as a teenager - she turns 20 on April 24th, but she has been at the top of the world rankings for the past 76 weeks.