The popstar confirmed her engagement to the Hunger Games star on Wednesday (June 6), saying that she "look[s] forward to a life of happiness with Liam".
A source told People that the pair's families could not be happier.
"Billy Ray [Cyrus] loves Liam. He's happy his daughter has found the right guy," one insider said. "The whole family loves Liam."
"They spend Christmas and other holidays together. They've been down to Australia," another source added.
Billy Ray expressed his excitement over the engagement on Twitter, writing: "All I ever hoped for as a Daddy was to see my kids reach their dreams. To find happiness...peace of mind ...and someday know... true love."
Miley recently confessed that she feels like her "dreams are coming true" in the wake of her engagement to Hemsworth.
Watch a trailer for Liam Hemsworth's upcoming film The Expendables 2 below: