Lilly Chapel is an unincorporated community in Fairfield Township, Madison County, Ohio, United States.

[3] At the time, there was no community, although the church did draw many settlers from that part of Union County.

The Lilly Chapel Post Office was established April 16, 1873,[4] and the first postmaster was Thomas Horn, who was also the community's first railroad agent.

[3] The town's first physician was Dr. Taggart, who moved to Lilly Chapel in 1880, and by 1885, the community contained three general stores, one grocery store, two blacksmith shops, a wagon and buggy shop, two steam sawmills, and two grain elevators.

[3] The post office was discontinued on December 31, 1957, and the mail service is now through the West Jefferson branch.