infinitive      present                 past            participle
to lie          lie,lies                lay             have/has lain
to lay          lay,lays                laid            have/has laid

To lie is to recline, or sprawl out, as in "I think I'll lie in the sun. Yesterday I lay in the sun. Have you lain in the sun?"

To lay is to set, as in "I can't find my pencil. I laid it on the table a minute ago, where I always lay it. I've laid it there every day for the past 17 years!"

To help remember: