The 48-year-old sat down with her husband for an intimate conversation on her Facebook show, Red Table Talk and revealed she developed a friendship with August around four years ago.
She said around the same time, the married couple were going through a 'difficult time' and they had 'basically broken up'.
The bombshell tell-all comes after both actors denied August's claims that Will gave him his blessing to have a relationship with Jada.
In Friday's episode of Jada's web series, the Hollywood couple sat opposite each other as they set the record straight and reaffirmed their commitment to each other.
Jada began explaining that the couple met August through their son Jaden and recalled that the Louisiana-born singer, who would have been 23 at the time, was 'really sick'.
'And it all started with him just needing some help, me wanting to help his health, his mental state.
'The outpouring for him from our family was initially about his health,' she said. 'We found all those different resources to help pull him through and from there you and I were going through a very difficult time.'
Will admitted, 'I was done with you,' while Jada added that they decided to separate for a 'period of time'.
'And then what did you do, Jada?' Will asked, urging his wife to keep talking.
'As time went on, I got into a different type of entanglement with August,' Jada explained.
The mother-of-two went on to respond to August's claim that Will gave her 'permission' to have an affair.
'The only person that can give permission in that circumstance is myself,' she insisted.
'But what August was probably trying to communicate because I could see how he could see it as permission because we were separated amicably, and I think he wanted to make it clear he's not a homewrecker because he's not.'
When Will pushed Jada to clarify what she meant by 'entanglement' she responded, 'It was a relationship, absolutely.'
Jada continued: 'I was in a lot of pain, and I was very broken. In the process of that relationship I definitely realized that you can't find happiness outside yourself.'
She explained the couple were going through a process of healing.
'I just wanted to feel good, It had been so long since I felt good... and it was really a joy to just help heal somebody.'
Jada said she and Will met singer August Alsina, who was 'really sick', through their son Jaden. She said she and Will were on the rocks at the time and decided to separate for a period of time. Will admitted: 'I was done with you.'
The Set It Off star pondered whether her actions were down to her codependency issues and needing to 'fix people' due to her past traumas.
As Will made light of the fact that he's being the dutiful husband and standing by his wife after her 'transgressions' amid intense media scrutiny, Jada admitted that she doesn't see her relationship with August 'as a transgression at all'.
'Through that particular journey, I learned so much about myself and was able to really confront a lot of emotional immaturity, emotional insecurity and I was really able to do some really deep healing,' Jada said.
'And as I came through and started to realize certain things about you and I, he decided to break all communication with me which was totally understandable. And I let that be and hadn't talked to him since so it is a little weird that all this stuff is coming out now since this was several [years ago].'
Will chimed in, 'For me, this was years ago,' as Jada reflected on how far they've come in their relationship, 'We have really gotten to that new place of unconditional love.'
At one point in the conversation they echoed each other, saying: 'We ride together. We die together. Bad marriage for life,' a reference to a catchphrase in Will's Bad Boys franchise.
August told The Breakfast Club's Angela Yee on June 30 that he was in love with Jada and said: 'I sat down with Will [Smith] and had a conversation due to the transformation from their marriage to life partnership… he gave me his blessing.'
August said the two became very close, and holidayed together with the family in Hawaii a year later and they even attended the 2017 BET Awards together.
He said: 'I totally gave myself to that relationship for years of my life, and I truly and really, really deeply love and have a ton of love for her.
'I devoted myself to it, I gave my full self to it, so much so to the point that I can die right now and be okay with knowing that I truly gave myself to somebody.
'And I really loved a person, I experienced that and I know what that feels like, and some people never get that in this lifetime.
'I know that I am completely blessed and this conversation is difficult because it is so much, that it would be hard for people to understand but, once it starts to affect me and my livelihood, I have to speak up about my truth.'
Shortly after Will's representative branded the reports as 'wrong', while a spokesperson for Jada denied the claims to Page Six, calling them 'absolutely not true'.
But a day later on July 2, Jada tweeted: 'There's some healing that needs to happen... so I'm bringing myself to The Red Table.'
Jada has been married to Will since 1997, they are parents to Jaden and daughter Willow, 19. Will has a son Trey, 27, from his marriage to Sheree Zampino, 53.
In 2019 August had denied an affair with Jada had taken place after his track 'Nunya' was released.
Rumors were sparked by the lyrics: 'You got me feeling like it was an act, you’re just an actress / Putting on a show ’cause you don’t want the world to know.'
The singer now says he is not speaking out to cause trouble.
He said: 'Contrary to what people may believe, I am not a troublemaker. I don’t like drama. Drama actually makes me nauseous.
'And I also don’t think that it is ever important for people to know what I do, who I sleep with, who I date … but in this instance it is very different because as I said, there are so many people that are side-eyeing me, looking at me questionable.
'I have lost money, friendships, relationships behind it and I think it is because people don’t necessarily know the truth. But I have never done anything wrong.
'I love those people [the Smiths] literally like my family. I don’t have a bad thing to say about them. They are beautiful people.'
Jada has previously denied rumors that she and Will are in an open relationship and said they will never divorce.
Will has previously said that the couple no longer use the 'married' title but refer to each other as 'life partners'.
'We don't even say we're married anymore,' he told BET in 2018.
'We refer to ourselves as life partners, where you get into that space where you realize you are literally with somebody for the rest of your life.
Twitter was alight on Friday after Jada Pinkett Smith admitted to having a relationship with August Alsina on this week's episode of Red Table Talk.
Fans and followers had mixed reactions when Jada admitted to the romance after initially denying there was anything between her and the R&B talent.
While opening up about the 'private' matter during a sit down opposite her husband of 23-years Will Smith, Jada said she and August dated while she was 'separated' from the Fresh Prince actor.
Though some fans were keen on calling Pinkett Smith out, others seemed to be there for the drama more than anything.
The white are really sure infidel.thats their way of life.seeking slight opportunities to explore carnal pleasure
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