Meaning: Fun or exciting
Dialogue #1: Karla and Trey are at a big house party in LA.
Trey: Hey, Karla! How's it going?
Karla: Oh, hi Trey. Great! How about you?
Trey: I'm good. Isn't this party lit?
Karla: Yes! I'm having so much fun!
Trey: Me, too. Tom's parties are always exciting.
Dialogue #2: Pam and Terry are talking about a new movie.
Pam: Have you seen the new James Bond movie?
Terry: Yes, I went last night. It was lit!!
Pam: Really? I haven't seen it yet, but I've heard it's awesome. I can't wait to go this weekend.
Explanation: The term lit has meant "drunk or intoxicated" for over a century. However, recently its meaning has changed to "exciting," as well as "excellent" or "awesome." In the first dialogue, Karla and Trey are talking about the party as being lit or really exciting. In dialogue #2, Terry tells Pam that the new James Bond movie is lit or awesome.