Ownership Submission
FORM 5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
Form 3 Holdings Reported
Form 4 Transactions Reported
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person *
TAUREL SIDNEY
 2. Issuer Name and Ticker or Trading Symbol
LILLY ELI & CO [LLY] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Chairman and CEO
(Last)
(First)
(Middle)

LILLY CORPORATE CENTER		 3. Statement for Issuer's Fiscal Year Ended (Month/Day/Year)
12/31/2005
(Street)


INDIANAPOLIS, IN 46285		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Reporting
(check applicable line)

_X_ Form Filed by One Reporting Person
___ Form Filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned at end of Issuer's Fiscal Year
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Amount (A) or (D) Price
Common Stock 12/14/2005   G 887 D $ 0 496,437 D  
Common Stock             515,810 D  
Common Stock             15,509 I 401(k)
Common Stock             1,290 I by child, A. Taurel
Common Stock             1,290 I by child, O. Taurel
Common Stock             1,290 I by child, P. Taurel
Common Stock             100,000 I (1) by wife, K. Taurel
Common Stock             95,623 I (2) Family Limited Partnership 1
Common Stock             20,500 I (3) Family Limited Partnership 2
Common Stock             1,018 I (4) GRAT 2002-4
Common Stock             0 I (4) S. Taurel Family Invest. GRAT
Common Stock             113,797 I (4) S. Taurel Waterfield GRAT
Common Stock             20,000 I (4) ST Family Investment GRAT II U/A DTD 11/22/05
Common Stock             80,000 I (4) ST Grantor Retained Annuity Trust U/A 11/22/05

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 2270 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned at End of Issuer's Fiscal Year
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
(A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee stock option 2/02 (right to buy) $ 75.92 04/30/2005   G(5) 149,172   02/18/2005 02/17/2012 Common Stock
149,172
$ 0 149,172
I (6)
Irrev. Trust
Employee stock option 2/02 (right to buy) $ 75.92 04/30/2005   G(5)   149,172 02/18/2005 02/17/2012 Common Stock
149,172
$ 0 199,511
I (4)
GRAT

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
TAUREL SIDNEY
LILLY CORPORATE CENTER
INDIANAPOLIS, IN 46285		   X     Chairman and CEO  

Signatures

Sidney Taurel 02/14/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Reporting person disclaims beneficial ownership of these shares.
(2) Held by Family Limited Partnership 1 in which reporting person is sole general parter. Reporting person's wife and children own limited interests, and reporting person disclaims beneficial ownership in the shares held by the partnership except to the extent of his pecuniary interest therein.
(3) Held by Family Limited Partnership 2 in which an LLC controlled by the reporting person is the sole general partner and the reporting person is the sole limited partner. Reporting person's wife and children own limited partnership interests in Family Limited Partnership 1, and reporting person disclaims beneficial ownership in the shares held by the partnership except to the extent of his pecuniary interest therein.
(4) Grantor retained annuity trust established by reporting person. Reporting person is trustee.
(5) The reporting person transferred these options to an irrevocable trust, for the benefit of his children.
(6) Irrevocable trust for the benefit of reporting person's children. Reporting person disclaims beneficial ownership of these shares.

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