Lake Lillian is a city in Kandiyohi County, Minnesota, United States. The population was 246 at the 2020 census. The town of Lake Lillian formed in February 1923 when railroad tracks were laid for the Luce Line Railroad. The name Lake Lillian came from the nearby lake Lake Lillian. The lake was named after Lillian Whitefield, wife of Edwin Whitefield who explored this area in 1856. The town was incorporated on February 25, 1926. The first school was built in Lake Lillian in 1913. In 1926, there was a report of oil being discovered in the city limits. During World War II, a hemp processing plan was built near Lake Lillian to help the war effort. In 1955, a new school was built. In 1965, Lake Lillian voted to approve the sale of liquor.
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