My sister in-law lies all the time and she makes up things to get everyone else mad at each other. Half the time she is lying about pointless stuff. I really do think she can't stop and if someone calls her out on her lie she always relies that she was misunderstood. She also goes to the bible about everything, like if you do call her out on her lie she will open up the bible and some how twist her words so that is is right and she will tell people that they are going to hell if they do something that she doesn't approve of. She does this though while she's smoking and drinking and talking about just having sex . I just really think she has something mentally wrong with her and she needs help. No one in the family wants her around because she just makes everyone so upset. She just know what makes you tick. And she always says that it is our family that has a promblem not her and her family is not like this so she just doesn't know how to handle this type of situation with us having a problem with her. A few weeks ago I just started working with her cousin and she tells me that she is like this with them also. So I just need help on how to handle this?

I can relate. It's hard to love someone that enjoys creating conflict. I've learned to listen but not believe everything she says. I don't try to confront everything because it only causes more conflict. Sometimes that can't be avoided but I do try.

She is probably addicted to lying and always wants to be right. If she is good at being manipulative then her life will always cause relationship strain. I had to wait years for God to get her attention. No matter how many people told her the truth she couldn't or wouldn't see it.

Don't give up on your sister in-law, but don't let her cause conflict if you can't trust her.

Thank you for the reply. I know I need to just not pay attention to her, but sometimes it is just very difficult to do even though I know she is just doing it to stir things. I do agree with you that she is addicted and most of the time I don't think she realizes that she is doing it.

Lying can be one form of mental illness. I have known a few people that just lie to be lying. I stay far away from them, but in your case this does not sound possible.
You need to choose your battles and as hard as this may sound, let the rest go.
If everyone knows about this lady then it will be easier to not be upset over these lies. Keep a strong front and maybe the rest of you can be happy.
Good luck.