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As a freshman at Weber State University, Lillard averaged 11.5 points per game in the 2008–09 season and led the Wildcats to the Big Sky Conference regular-season championship. He was named conference Freshman of the Year and first-team all-conference, the first Big Sky freshman to do so since Eastern Washington's Rodney Stuckey in 2006.

As a sophomore, Lillard took his game to another level. He raised his scoring average to 19.9 points per game and again led the Wildcats to the regular season conference championship. At the conclusion of the season, Lillard was named Big Sky player of the Year and an honorable mention All-American by the Associated Press.

In 2010–11, Lillard was again off to a good start. However, his season was cut short as he suffered a foot injury nine games into the season and was forced to take a medical redshirt. Lillard was leading the Big Sky with 19.7 points per game before his injury sidelined him for the year. In 2011–12, as a redshirt junior, Lillard led the Wildcats to a 14–2 record in Big Sky conference play and an appearance in the Big Sky championship game. Lillard led the nation in scoring along side John Tabanthrough most of the season, averaging 24.5 points per game by season's end.

On December 3, 2011, in Weber State's 91–89 double-overtime win over San Jose State, Lillard scored a college career-high 41 points, including both game-tying scores at the end of the second half and first overtime and a winning three-point play at the end of the second overtime. His efforts earned him his third first-team all-conference selection and his second Big Sky Player of the Year award, and he was a finalist for the Bob Cousy Award. Shortly after the season ended, Lillard, widely regarded as the top point guard prospect in the country, decided to forgo his senior season and declared himself eligible for the 2012 NBA Draft. Lillard finished his college career as the No.2 scorer in Weber State history (1,934 points) and the No. 5 scorer in Big Sky history.