In a preview of her new reality show The World According to Paris, Hilton was mistaken for Lohan when giving earrings to a homeless woman.
The socialite quipped: "If I were Lindsay, I would be stealing earrings... not giving them away."
Lohan is currently involved in an ongoing court case after being accused of stealing a necklace from LA boutique Kamofie & Company.
According to TMZ Lohan told friends: "[Paris] is mean. You don't have to make fun of serious matters in people's lives to be funny."
Hilton has since released an apology to the website, saying: "I apologise to Lindsay for the comment that I made. I was joking around but it was thoughtless and unnecessary.
"I am reaching out to Lindsay so I can tell her myself."
The World According To Paris premieres on June 1 on the Oxygen Network.
