lie / lye are similar-sounding terms with different meanings (referred to as homophones). To better understand the differences, see below for definitions, pronunciation guides, and example sentences using each term. 👇
lie: (noun) a statement that deviates from or perverts the truth. (noun) Norwegian diplomat who was the first Secretary General of the United Nations (1896-1968). (noun) position or manner in which something is situated. (verb) be located or situated somewhere; occupy a certain position. (verb) be lying, be prostrate; be in a horizontal position. (verb) be and remain in a particular state or condition. (verb) tell an untruth; pretend with intent to deceive. (verb) have a place in relation to something else.
lye: (noun) a strong solution of sodium or potassium hydroxide.
lie: l·AY
lye: l·AY
(Examples are Wikipedia snippets under the CC ShareAlike 3.0 license. Definitions drawn from WordNet.)