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The picture was released on Thursday as part of the Duke and Duchess of Sussex's annual Christmas card.
The informal snap shows the family of four sitting on steps, with Meghan holding six-month-old Lilibet up in the air. Two-year-old Archie can also be seen sitting on his father's lap, sporting a full head of red hair.
The Sussexes included a handwritten message which read: "This year, 2021, we welcomed our daughter, Lilibet, to the world. Archie made us a 'Mama' and 'Papa' and Lili made us a family."
They added: "As we look forward to 2022, we have made donations on your behalf to several organisations that honour and protect families - from those being relocated to Afghanistan, to American families in need of paid parental leave."
The photograph was taken by Alexi Lubomirski, who famously captured the couple's engagement photos back in 2017.
Sharing the photo on Instagram, Alexi wrote: "This is one of those rare and special projects, that one is fortunate enough to be a part of.
"To be able to continue the story of this family whom I first photographed as an engaged couple, then on the day of their wedding, as a married couple and now seeing their love manifest into two beautiful children, has been a delightful honour.
The photographer added: "This day with the Duke and Duchess of Sussex was one such joyous experience, and one that I feel extremely privileged to have been invited to capture."
The Sussexes welcomed Lili back in June. Her name is a sweet tribute to both Harry's mother, Princess Diana, and to the Queen, whose family nickname is Lilibet.
According to the couple's Archewell website, Lilibet was born on Friday 4th June, at 11.40am. The statement read: "It is with great joy that Prince Harry and Meghan, The Duke and Duchess of Sussex, welcome their daughter, Lilibet "Lili" Diana Mountbatten-Windsor, to the world.
"Lili was born on Friday, June 4 at 11:40 a.m. in the trusted care of the doctors and staff at Santa Barbara Cottage Hospital in Santa Barbara, CA.
"She weighed 7lbs 11oz. Both mother and child are healthy and well, and settling in at home. Lili is named after her great-grandmother, Her Majesty The Queen, whose family nickname is Lilibet. Her middle name, Diana, was chosen to honor her beloved late grandmother, The Princess of Wales."
Lillibet's arrival came after the couple suffered a devastating miscarriage last year, which Meghan detailed in a New York Times piece.
Writing in November 2020, Meghan wrote that she had started her day like any other. But after experiencing a "sharp cramp" she knew something was amiss.
"I dropped to the floor with him in my arms, humming a lullaby to keep us both calm, the cheerful tune a stark contrast to my sense that something was not right," she wrote. "I knew, as I clutched my firstborn child, that I was losing my second.
"Hours later, I lay in a hospital bed, holding my husband's hand. I felt the clamminess of his palm and kissed his knuckles, wet from both our tears. Staring at the cold white walls, my eyes glazed over. I tried to imagine how we'd heal."
In the powerful account, titled 'The Losses We Share', Meghan went on to explain how, in the midst of watching Prince Harry's heartbreak, she realised the only way to begin to heal was to ask if he was okay.
Featured Image Credit: PA
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