Only happy tears here!

Ashley Iaconetti and Jared Haibon are engaged, PEOPLE confirms. Haibon popped the question Sunday while in Mexico for the upcoming fifth season of Bachelor in Paradise, the summer spin-off series where The Bachelor alums’ up-and-down relationship began three years ago.

Haibon got down on one knee on the beach as the bride-to-be, wearing a bright yellow dress, put her hands on her chest and threw her head back in excitement.

“Ashley and Jared are both so excited about the engagement,” a source tells PEOPLE. “Ashley had her suspicions that an engagement would happen in Mexico but she didn’t want to get herself too psyched out and then have nothing happen. They’re both thrilled though!”

Fans remember Iaconetti, 30, being crushed on the second season of Paradise in 2015 when Haibon, 29, didn’t reciprocate her instant feelings of attraction. However, the two remained close and built a strong friendship.

During a weekend spent in Virginia with their friends for a charity event Iaconetti was planning, Haibon saw her in a different light. “I was in love,” he previously told PEOPLE. “That was such a different experience being with someone in the show and in real life. [Iaconetti was] just so down to earth and easy-going, ambitious … sexy.”

Added Iaconetti, “I knew that he was looking at me!”