Seeing oneself tell a lie is interpreted as foolishness and stupidity, because lying brings shame. At times, seeing lying signifies giving false testimony, slander, and being far from salvation.
Seeing or telling a lie also signifies misfortune and failure to attain deliverance, in reference to the Qur'anic meaning that those who fabricate lies against Allah will not prosper.
Ibn Kathir said: Seeing oneself lie about Allah and His Messenger signifies unbelief and a major sin.
Seeing oneself lie about one's own actions by saying, 'I did what I did not do' or 'I saw what I did not see,' signifies dying without faith at the final breath, because the source states that lying and faith do not coexist.