Neighbour of Tia Sharp's grandmother Paul Meehan gave a detailed and "vivid" description of what she was wearing, the court heard, which delayed police from interviewing Stuart Hazell earlier.
But police had spoke to Meehan about the case three times before he finally said he saw her.
His explanation is that he "confabulated" seeing her - his brain mistakenly filled in the blanks in good faith.
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The soap star allegedly posted tweets calling Indian people "bastards".
The 35-year-old chef went missing in 2009 and no body has been found.
The overnight rain should clear away to the southeast this morning.