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LILY is a high performance VLIW DSP processor for multimedia applications, developed by Tsinghua University. The processor classifies the instructions, and determines whether the instructions should be issued in parallel according to the order of the instructions. Under this parallelism, LILY processor is capable of saving one bit of operation code in the condition of inserting very few no operation (NOP) instructions. In addition, it is needed to design a corresponding assembler to accommodate the above new parallelism, which aids LILY to complete the highly efficient method. The evaluation results show satisfactory suitability of the processor for high performance applications, high code density, and small program code size.