Officer Nicholas Edert, 23, was shot near 14th Avenue and 14th Street just after 8:30 p.m. Tuesday.
The shooting happened as he approached a suspect who pulled out a gun. He was shot in the groin within minutes of arriving to the scene.
The suspect was quickly arrested and is in custody.
Edert was greeted by his fellow officers when he was released from University Hospital on Wednesday afternoon.
"Last night could have very easily ended in some serious tragedy with multiple officers facing death, but thanks to the heroism of our police officers, Officer Edert will spend Christmas at home with his family like he's supposed to," said public safety director Brian O'Hara.
After his release, Edert, who is part of the department's intelligence unit, was promoted to detective.
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