'Last Dragon' Star -- Released from Hospital After Being Gunned Down In NY

The actor who played Bruce Leroy's little bro in the 1985 classic "Last Dragon" has finally been released from a NY hospital ... after being SHOT twice in broad daylight ... TMZ has learned.

Leo O'Brien is making one hell of a recovery after sustaining gunshot wounds to his stomach and his arm ... when a man opened fire on the actor for no apparent reason on Labor Day.

O'Brien tells TMZ, "I'm feeling much better."