It is easy to confuse lie and lye because they are homophones. Homophones are two words that sound alike but are spelled differently and have different meanings. The lie is a verb because it is an action. This word alone has two different meanings. One of the meanings can refer to knowingly giving false information. The other meaning of lie is also an action, which is to lie on the ground. Lye is a noun. It is one of the types of metal hydroxides. It is also referred to as sodium hydroxide. Lye is used to making soaps and can ensure that drains do not clog up.