1994 was Lilia's coming-out party. No longer the distracted athlete of the year prior, she established herself as a top competitor on the world scene, and dazzled audiences with her originality, choreography, and attention to detail. She finished an impressive sixth all-around at the 1994 World Championships, and won a silver on balance beam. She then took home a full set of medals at the European Championships later in the year, and won a gold and two bronze medals at the Goodwill Games. Lilia was praised worldwide for being the "complete package"--meaning a gymnast who is as strong and powerful as she is elegant and graceful. Lilia often remarked that her grandmother instilled in her a sincere love for ballet, and Lilia was perhaps best known for the balletic qualities in her gymnastics. Though she certainly had had her share of accomplishments in 1994, Lilia nonetheless had a reputation for making critical mistakes in all-around competition that prevented her from medalling and from truly becoming the world's best gymnast. Thus, there was still much progress to be made.
Lilia entered the 1995 World Championships with a whole new set of routines and in the best shape of her life. However, she was considered by most to be the underdog. In a strange competition wherein several of the top competitors faltered, Lilia had the meet of her life, winning the all-around title. She went on to win another gold and two silvers. This win marked a turning point in her career because she had finally proven to everyone that she was a champion, and she started to approach her gymnastics with increased confidence and sharper focus.
In the beginning of 1996, Lilia suffered a critical injury when she broke a rib and cracked another upon falling from the beam. Not much was made of this injury, however, as she seemed to recover without problems, and won the European all-around title that year. The clear favorite going into the 1996 Summer Olympics in Atlanta, Georgia, Lilia overcame the clear favoritism toward the American athletes, and won the all-around title convincingly. She added another individual gold on floor, and a silver on beam. She became the first female gymnast to win the Olympic all-around title as a defending World Champion since Ludmilla Tourischeva in 1972. She dedicated her title to her beloved grandmother, who had died just three weeks prior to the Olympics.
Lilia originally intended to continue competing after the 1996 Olympics and was a part of the Ukrainian team at the 1997 Worlds, however, injuries forced her to sit out Worlds and to retire. She is now married to Ukrainian businessman Timofei Nagorny and coaches extensively, splitting her time between the Ukraine and the USA.