Are Prince Harry & Cressida Bonas Engaged?! Why Their Relationship Didn't Work The First Time

Prince Harry, the 30-year-old royal, admitted that he's finally ready to start a family of his own. "There comes a time when you think, 'Now is the time to settle down," he said. "I'd love to have kids right now, but there's a process that one has to go through."

According to a palace source, the prince got back together with his former girlfriend Cressida Bonas this past March... and they could be secretly engaged!

"They've never been happier together," the source says. "Cressida says he's the love of her life."

Their dating days began in early 2012, when Harry's cousin Princess Eugenie introduced Harry to Cressida. Two years later in April 2014, they broke up. Reports showed the 26-year-old aspiring actress felt stifled by the attention that comes with dating the world's most eligible bachelor.

Last year in September, Harry and Cressida were spotted seeing a movie together—the Cameron Diaz-Jason Segal comedy Sex Tape—and they continued to make a point to support each other's professional endeavors too, including Harry showing up to all of Cressida's performances and Cressida making an appearance at Harry's events like his concert finale of the Invictus Games in which he organized for injured military personnel and veterans.

"Their time apart really brought home to him how perfect she is for him," the source says. "It took him a while to understand it, but he knows now that Cressida is the only one for him."

Surprisingly, it was Harry's sister-in-law, Duchess Kate, who encouraged him to try again with Cressida. "She's his condiante when it comes to women, and they had a heart-to-heart," the source says. "She told him that he needed to stop being scared to settle down and to follow his heart. Now that he has, he's determined not to let her go again."

"The Queen is not thrilled about Cressida's career, because princesses have royal duties to attend to that should be priority," the source says. "But she gave her blessing to the engagement because she wants Harry to settle down and have a family."

"William and Kate like her, Prince Charles and Camilla adore her, and Prince Andrew and Duchess Fergie consider her one of their own thanks to her friendship with their daughter," the source says. "Cressida has brains, beauty and breeding; she's perfect for Harry in almost every way."

"I'm doing all right by myself. [But] it would be great to have someone next to me to share the pressure," Prince Harry said in that same recent interview. Find out why their wedding would be different than big brother Prince Williams in OK!'s new issue that hit newsstands June 17.