After dissipating, the remnants of the storm crossed into the Pacific Ocean, where they contributed to an area of shower activity that persisted over the Gulf of Tehuantepec.

[1][2] The depression was upgraded to a tropical storm on August 29 based on satellite presentation that depicted significant cirrus outflow and a comma–shaped cloud mass spanning 2° of latitude in diameter and was subsequently named Lily.

During its intensification, United States Air Force reconnaissance tried to fly into the hurricane, but penetration was rendered impossible due to the cumulonimbus clouds in the spiral bands, causing the aircraft to rely on radar readings, which showed an eye 40 miles (64 km) in diameter.

Shortly after the report, the hurricane peaked in intensity with winds of 85 mph (137 km/h) just prior to landfall 30 miles (48 km) northwest of Manzanillo.

[3] The north-northwestward track Lily took off the Mexican coast was not well-forecast due in part to difficulties in interpreting the radar data from the reconnaissance flight.

[2] Another boat with twelve people aboard capsized off a beach near Puerto Vallarta while weathering wind gusts of 110 mph (180 km/h) from the hurricane.

[2] The hurricane also passed over the nearby town of Barra de Navidad, where the residents took refuge inside the church of San Antonio.

Trucks transporting food and medicine from the Jalisco state government were forced to turn back because of flooded roads.

[6] This effort was hampered because, after three federal helicopters and Air Force planes touched down at the local airport, the road into the city was still flooded, meaning the aid could not be distributed.