She joked: "First you hang out with all the mean girls and then you get accused of stealing a diamond necklace!"
Despite her willingness to laugh at herself, Lohan's performance was widely slammed by viewers and critics.
Entertainment Weekly described the Mean Girls star as "worst host of the year", while The Los Angeles Times said the performance gave the impression that "Lindsay's comeback train is stuck at the station".
She was also criticised on social networking website Twitter for her over-reliance on cue cards.
Referring to her previous drug use, one Twitter user, drunkenough, wrote: "This may be the first time Lindsay Lohan had trouble doing lines."
Despite the criticism, Lohan is said to feel "proud" of the episode.
Insiders told TMZ.com that the actress "feels she did the best she could do".
Check out a preview of Lohan's SNL performance:
- Bang! Showbiz