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Its all good. The G stands for 'Good'. Also known as 'Its all gangster'
Guy1: Its all g homie

Guy2: Aight Dawg
by howwasyourday April 21, 2013
Slang term meaning "It's all good."
"Hey man, we didn't make the finals, but it's all g" or
"I know it sux now, but it'll be all g again soon"
by The Lock June 16, 2012