A 25-year-old woman who was caught with ice just 30 days after being released from jail has returned to court.

Demi Jade Nash, 25, of Raglan Parade, Warrnambool, was released from custody on August 1 after serving a 120 day sentence for trafficking ice and reckless driving endangering serious injury.

She was placed on an 18-month community corrections order, with conditions she do 100 hours of community work as well as assessment, treatment, rehabilitation, programs and judicial monitoring.

On Thursday she pleaded guilty in Warrnambool Magistrates Court to possessing and using methamphetamine. She was convicted and fined $400.

Nash was a passenger in a vehicle that was intercepted by police in Moore Street in Warrnambool about 2.30am on Thursday. 

She was arrested after police located .38 grams inside her handbag. 

Defence lawyer Amanda Chambers said Nash had taken drugs in order to stay awake as she was worried about the ability of the driver. 

She said the driver had been arrested and charged with drug related offences. 

Ms Chambers said it was too early for Nash to have commenced the treatment and rehabilitation conditions of her community corrections order, but that she planned to utilise the support as soon as possible.

 EARLIER 7.30am

A 25-year-old Warrnambool woman will appear in court today charged with drug related offences. 

Warrnambool police Sergeant Jo Wastell said the female was a passenger in a vehicle that was intercepted in Moore Street in Warrnambool overnight. 

A search was conducted and the woman was found in possession of an unknown quantity of drugs, believed to be methamphetamine. 

She was was arrested and is expected to appear in Warrnambool Magistrates Court on Thursday. 

More to come.