Pictures of the singer published in The Sun appeared to show her passed out on the grass in the VIP section of the music festival.
Witnesses described the mum-of-two of being ‘out of it’ and that her ‘chin was moving from side to side, chewing constantly’.
According to reports, paramedics attended to the singer after worried friends picked her up and sat her down in a nearby car.
The ‘Smile’ singer was wrapped in a foil blanket and given oxygen before her husband Sam Cooper, who was elsewhere at the event, arrived and drove her away.
A spokesman for Lily told The Sun: ‘She is totally fine and had a great Glastonbury.’
Earlier in the festival, the 30-year-old star warned fans of the dangers of gas cookers after a stove she was using exploded in her caravan, leaving her with minor burns.
“I was in a gas explosion in my caravan today and I have minor burns and synged my eyelashes considerably. it was absolutely terrifying and I wouldn't want anyone to go through anything similar,” she told fans on Instagram.
“Please be SO careful using gas stoves at anytime but especially during festival season when ones reaction times may be a little off. Feeling very grateful to be alive. Happy camping."