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Although we are never told, from the last book we can assume that they were good friends before their fifth year when they broke friends over Snape calling Lily a 'Mudblood'. It is possible that Lily loved him as a friend but no romantic relationship was ever hinted at. We know that Snape loved Lily romantically but there was no suggestion of his feelings being reciprocated. However, Lily could have loved Snape but was turned off by his interest in the dark arts.

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