Staff at the exclusive Chateau Marmont hotel told the British singer to end the party at her rented bungalow after other guests complained about the noise.
A source told Britain's Daily Mirror newspaper: "Lily invited a group of eight people she met at a restaurant back to her bungalow at 1am. They were playing music until around 4am, until the hotel called and asked Lily to turn it down."
The group are said to have got through several bottles of wine, vodka and champagne.
Earlier this week, Lily was spotted having dinner with another notorious party girl, Lindsay Lohan and her alleged girlfriend, DJ Samantha Ronson.
Lily is in Los Angeles putting the finishing touches to her second record, her follow-up to her hit debut LP 'Alright, Still' which was released in 2006.
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