The pair were seen having a low key celebration at Pink Taco in Century City, Calif. on Thursday evening and things looked very cozy, a source tells Celebuzz.
So what did the two singers get up to at dinner?
“It looked like a first date,” a source told us.
“(They were) sharing guacamole and queso as they got to know one another, and kept it really private and low key.”
Rumors have been swirling that X Factor judge Lovato, 20, and Horan, 18, have been getting close after Lovato admitted the English boy band star was her celebrity crush.
“Niall Horan from One Direction — he’s so adorable!” she told MSN Music.
The pair certainly have one thing in common — they are both MTV VMA winners.
Lovato won a Moonman award for Best Video with a Message for her hit song, “Skyscraper,” and of course, One Direction cleaned up taking home three awards.