Learn the tone, meaning, and better English alternatives around "they'll smooth it out eventually" with real scene examples.

It means the problem will likely be resolved over time.
From The Dumb Billionaire Heiress In Love Part I, Episode 33
The speaker is saying a problem will probably work itself out later.
Use this to calm someone down about a temporary problem. It is natural in casual conversation but may sound too casual in formal settings.
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