Gorga, 74, was rushed to a New Jersey hospital in November, causing Giudice to cancel her appearance on Watch What Happens Live!
"Teresa was afraid she was going to lose her dad," the source said. "Teresa is so happy he's getting better."
This isn't the first health problem Gorga has had.
In Giudice's book, Standing Strong, she chronicled taking her father to the emergency room because he was coughing up blood not long after her mother, Antonia Gorga, passed away in March.
"As we sat in the waiting room, which was absolutely freezing, I was rubbing his back affectionately," she wrote. "Just like he used to rub mine when I was a little girl and I was sick."
It's been a tough year for Giudice, with her husband Joe Giudice serving time in prison for mail and wire fraud and the loss of her mother Antonia Gorga in March.
Antonia passed away at the age of 66, devastating her family and Giudice in particular, as was documented on the Bravo reality show.
In October, Giudice posted a heartfelt tribute to her mother on what would have been her 67th birthday.
"Still cannot believe it," she captioned one photo. "My heart breaks everyday that you are not here with us. Love you more than I can express."
Photo credit: Instagram/@teresagiudice