The 'Mean Girls' actress - who has endured several stints in rehab and a string of legal problems in recent years - kicked off the show by referring to her stint under house arrest in the opening monologue.
She joked: "Wait, so the alarm goes off if I leave the stage?"
'Bridesmaids' actress Kristen Wiig also mocked the guest host, giving her a hug that turned into a body search for illicit substances, quipping "she's clean" at the end.
In another sketch, she donned a bandana to play a prisoner trying to scare three boys of a life of crime, and made reference to her arrest last year for stealing a necklace.
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, Lindsay'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 slammed 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, Lindsay is said to feel "proud" of the episode.
Insiders told TMZ.com that the actress "feels she did the best she could do."