Are the lies hurting anyone or negative against anyone? (not asking harshly, just trying to understand the situation)

But if they are harmless, I would probably wouldn't end the friendship if she means that much to you.. maybe pull her up occasionaly by asking more direct questions of the 'story'..

a lot of people exagerate the truth, so it depends on what the lies are and how they really affect you..

Guessing that didn't really answer your question?