The former lovers were spotted cosying up back stage as the three-day festival drew to a close.
The singer was apparently seeking comfort in her on-off boyfriend after learning her grandmother had died.
Later as she she sang as a special guest of producer Mark Ronson, she told the assembled crowd: "You know what? My nanny Allen died last night so, this one's for you. I love you."
Ex factor: Lily Allen relaxed with her former boyfriend Ed Simons at Glastonbury yesterday
Close: The pair were spotted cosying up backstage
During the performance she also surprised the audience with the revelation that she had been coming to Glastonbury for 20 years - presumably in the arms of her hell-raising father, the actor Keith Allen.
Summing up the weekend of music, festival founder Michael Eavis said: "We've a much younger audience this year.
"It's like Sunday school at a nice local church. You have to have youngsters there, otherwise we just all grow old together."
As always, many of the 137,500 ticket holders at the festival were adamant this year had been one of their "best ever".
Centre of attention: Lily with Ed and her music producer pal Mark Ronson
Rory Cleland, 17, a student, from Eccleshall, in Sheffield, said his first Glastonbury had been a "crazy" experience.
"It's been brilliant, I've loved it," he said.
"This is the first year my parents let me come. I had to watch it on television last year - being here is just crazy.
"I'll be back next year, if I can get a ticket."
Valdi Rajania, 28, a planning officer, from Birmingham, said: "I've been to the last three, and this was the best ever. The weather has been good, the music great. The atmosphere has been really positive.
Tearful ... Lily dedicates a song to her grandmother
Lily joined Marc Ronson on The Other Stage
Keeping hydrated: Lily reaches for a beer between songs
It makes a real difference without the mud. I have heard some say 'it's not Glastonbury without the mud' but I'm happy enough without it."
Music-lovers were treated to an energetic performance from 67-year-old American singer-songwriter Neil Diamond on the Pyramid Stage.
The crooner entertained the crowd with hit material spanning more than four decades - including Red, Red Wine, Sweet Caroline and material from his new album Home Before Dark.
Grief: Lily was given the news of her grandmother's death while she was at Glastonbury Festival
Last night, multi-platinum selling artist Jay-Z answered his critics with a show-stealing performance full of swagger and bombast.
The crowd roared with laughter as the show opened with a clip of Oasis' Noel Gallagher voicing criticism of the rapper's performance.
With a wry grin on his face - Jay-Z bounded on to the stage and performed a satirical cover version of the Oasis' hit Wonderwall.
Jay-Z silenced his critics with an energetic set
The 38-year-old - real name Shawn Carter - then powered his way threw an hour and 15 minutes of hits, including Hard Knock Life, Encore and 99 Problems - while his wife, R&B star Beyonce Knowles, watched from the side of the stage.
Many revellers were still on a "massive high" after Jay-Z's blistering performance last night.
Friends Sally McHugh and Rachel Hanks, travelled 340 miles from Hawick, in the Scottish borders, for the festival.
Revellers enjoy the last day of tunes at Glastonbury
Student Sally, 18, said Jay-Z would stand out as a festival highlight.
She said: "He was really up for it and the crowd around us just went wild. He had loads of energy and that just rubbed off on everyone else.
"He genuinely seemed pleased to be there and pleased he received such a great reception."
Fab five: Beatles puppets roam the festival grounds
Rachel, 17, also a student, said: "We were jumping and dancing for the whole set. It was mind-blowing.
"As you were walking away, you could hear other people just talking about how brilliant he was."
The total 180,000 on site, including staff, had another day of fairly calm weather today - with only a couple of very light showers.
Friday saw the mud return after a day of moderate showers, but it soon dried up yesterday when glorious sunshine lit the 900-acre site.
Gareth Harvey, forecaster for MeteoGroup UK, the weather division of the Press Association, said revellers are likely to leave the festival tomorrow under blue skies.
Latest figures from Avon and Somerset Police showed an increase in crime from last year.
There have now been 489 reported crimes, including drugs offences. This compares to 263 reports in 2007.
Fans lap up the atmosphere at the Pyramid Stage
The majority of this year's reported crimes were theft from tents - with 244 incidents.
Arrests stand at 134, slightly down on 2007, police said.
A police spokeswoman said: "Despite a challenging festival in terms of thefts from tents, 99.7 per cent of festival goers will return home having not been victims of crime.
"The event remains one of the safest festivals of its kind and we continue to work proactively with festival security to ensure people have a safe final night."
Police warned revellers to keep their alcohol consumption down so they are fit to drive in the morning.
The spokeswoman added: "Alcohol takes a number of hours to clear the system and I would ask all motorists to ensure they are fit to get behind the wheel before driving away from the site.
"A rash decision to drive while under the influence could mean you not only ruin a fantastic festival with a potential driving ban, but put yourself and other road users at risk."
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