Cheadle went to pains to address the issue at the "Iron Man 2" press conference on Friday.
Cheadle said he "wanted to put to bed that people seemed to be thinking there was a problem. There wasn't."
"We're cool," he said. "Terrence is a friend whom I've known for a long time."
Howard's recasting is still a big mystery, with the trades suggesting he wanted more money but Howard saying that was not the case and calling the decision "the surprise of a lifetime" in 2008.
Rhodey's part is substantially bigger in this installment as well as Cheadle dons one of the Iron Man suits to fight evil-doers alongside Robert Downey Jr. After seeing the film, it's clear Howard's leading-man charisma is missed this time around even if Cheadle is a great actor in his own right. But most movie-goers won't even miss him.