Board Thread:Lore Discussion/@comment-76.29.116.250-20150428003529/@comment-26023500-20150605185539

I doubt that the two were related, though they could have theoretically had similar cultures, since many Khajiiti in Elswyer are nomadic, and the Lilmothiiti were also nomadic.

That is a small link, but it isn't out of the question that the two cultures were similar, with the Lilmothiit and Khajiit potentially having trade links, or being contesting races. The "proto"-Lilmothiit could have even lived in Elswyer or Valenwood for a time, but their ancestors were driven out due to possible conflict with the natives (The Bosmer and Khajiit), landing them in the Marsh, where they could have made minimal contact with the Argonians.

Just a theory.