Prince Harry and Meghan Markle's Daughter Born, Named Lilibet Diana

Prince Harry and Meghan Markle have welcomed their second child -- a baby girl who's been named to honor Harry's late mother, Princess Diana, as well as his grandmother, Queen Elizabeth.

The Duke and Duchess of Sussex just announced their daughter's arrival Sunday morning, but they say Meghan actually gave birth on Friday at 11:40 AM at Santa Barbara Cottage Hospital. The little girl's name -- Lilibet Diana Mountbatten-Windsor.

They've already given her the nickname, Lili, and say she tipped the scales at 7 lbs. 11 oz.

Lili's got some big shoes to fill with that name -- her first is the Queen's family nickname, and then there's Princess Di ... Lili's grandmother. Giving her Diana's name is momentous for Harry, who -- along with Prince William -- is scheduled to unveil a statue of his mother in the UK this summer to mark what would have been her 60th birthday.

The Sussexes say Meghan and Lili are both healthy and settling in at their home in Montecito. The couple announced in February that they were expecting, and Lili's birth comes at a stressful time in the royal family.

As you know, earlier this year Meghan and Harry called out the royals for racism ... telling Oprah Winfrey, multiple family members had expressed concern their first child, Archie, would be too dark-skinned.

It will be interesting to see if a new baby, and Princess Di's statue ceremony, can help the House of Windsor mend fences.

Harry and Meghan now have a full set -- a boy and girl. Lili's big bro, Archie is 2.

Congrats!