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"It's My Party and I'll Lie if I Want To" the fifth episode of season 1. The title is a reference to the Lesley Gore song "It's My Party", which includes the lyrics "It's my party and I'll cry if I want to." It won the "Brother Like No Other" category in the 2006Disney Channel New Year Sing-Along Bowl-athon.
Miley takes Lilly backstage at a Hannah Montana concert but Lilly starts to embarrass Miley with her being unaccustomed to the perks of being a famous celebrity. When she is introduced to Traci Van Horne, Traci refuses to accept her due to Lilly's outrageous behavior. As Lilly is beginning to adjust to celebrity life, she embarrasses Miley by being unable to control her obsession with celebrities. Miley tries to stop her but can't because she has to go on stage to sing. When Miley receives a phone call inviting her to Kelly Clarkson's party, Lilly gets excited, but Miley lies and tells her that the party has been canceled so Lilly can't embarrass her and Traci doesn't want her to bring Lola.
At the party, Miley does not have fun due to the absence of Lilly. A photographer takes her photo, and still takes pictures after Miley refuses to have it taken (because she does not want Lilly to see her at the party). She then jumps on the photographer's back trying to grab the camera and stop the pictures. The next day Miley sees the picture of herself on the photographers back on the front page of the newspaper and spends all day trying to make sure Lilly doesn't see it. Lilly comes around to Miley's house and so Miley tries to hide all of the newspapers. When trying to stop Lilly from reading the paper she stalls by talking.
Lilly eventually finds out, so Miley confesses everything and is forgiven. When Lilly, as Lola, goes to another party with Miley, Traci sees her and won't accept her. Hannah tells Traci that if she doesn't accept Lola, she will tell everyone that Traci sneezed and her snot hit the Olsen twins. After Lilly tries to act cool when seeing Orlando Bloom (off-screen), Hannah lets her scream. A guard says "She really is a dork," to which Hannah replies, "I know, but she's my dork," and then runs off after her screaming, "ORLANDO!"
In a subplot Jackson is persuaded to lend his hair to a pretty girl studying at beauty school, but finds out that it is a plot of Rico's when she makes him bald. For revenge, Jackson manages to have the girl cut Rico's hair, making him bald too.
Traci calls Lilly 'Lola Loser Giggles', which is a reference to Emily Osment's part on Spy Kids 2 and Spy Kids 3-D as Gerty Giggles.
Miley, in an effort to have Lilly avoid seeing the picture, refers to "the pumpkin-headed kid always trying to kick that football", which is a reference to Charlie Brown.
Kelly Clarkson is mentioned in this episode.
According to "Keeping Secrets", one of several novels based on episodes of Hannah Montana, Traci Van Horn's father is Hannah's record producer.