• Lexical Ambiguity:
  Words often have multiple meanings ( homographs) and often multiple parts of speech.
  

  bit:	verb:	past tense of bite
  	noun:	a small amount
  		instrument for drilling
  		unit of computer memory
  		part of bridle in horse's mouth

• Grammatical Ambiguity:
  Different ways of parsing (assigning structure to) a given sentence.

  I saw the man on the hill with the telescope.

Lexical ambiguity compounds grammatical ambiguity when words can have multiple parts of speech. Words can also be used as other parts of speech than they normally have.

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