The Duke and Duchess of Sussex announced the arrival of their daughter, who they named Lilibet Diana

Meghan Markle and Prince Harry's baby girl is named after two special women in Harry's life.

On Sunday, the couple announced the arrival of their second child, who they named Lilibet Diana. They plan to use the nickname "Lili."

Lilibet is a sweet tribute to Harry's grandmother, Queen Elizabeth. The monarch was affectionately called Lilibet as a child by her family members as a nickname. In a loving gesture to her husband of 73 years Prince Philip who died in April, the Queen placed a handwritten note on top of his coffin. The monarch signed the note from "Lilibet." Philip was thought to be the last person in the Queen's life to call her by that name.

It was also a loving nickname used by the Queen's father, King George VI, who once said of his two daughters, "Lilibet is my pride. Margaret is my joy."

Queen Elizabeth
Queen Elizabeth
| Credit: STEVE PARSONS/POOL/AFP via Getty Image

The baby's middle name honors Princess Diana, Harry's beloved mother who died in a 1997 car crash in Paris.

Prince William and Kate Middleton also honored the Queen and Princess Diana when naming their daughter, Princess Charlotte. The 6-year-old royal's full name is Princess Charlotte Elizabeth Diana.

princess diana
Princess Diana
| Credit: Antony Jones/UK Press via Getty Images

A top name prediction ahead of Meghan and Harry's daughter's birth was Philippa. Beyond paying tribute to Harry's grandfather Prince Philip, the moniker also has historical significance as it would honor Philippa of Hainault, the wife of King Edward III and first Black queen of England.

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The Duke and Duchess of Sussex welcomed their baby girl on Friday, June 4.

"It is with great joy that Prince Harry and Meghan, The Duke and Duchess of Sussex, welcome their daughter, Lilibet "Lili" Diana Mountbatten-Windsor, to the world," read a statement from the couple released on Sunday.

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"Lili was born on Friday, June 4 at 11:40 a.m. in the trusted care of the doctors and staff at Santa Barbara Cottage Hospital in Santa Barbara, CA. She weighed 7 lbs 11 oz. Both mother and child are healthy and well, and settling in at home," the statement continued. "Lili is named after her great-grandmother, Her Majesty The Queen, whose family nickname is Lilibet. Her middle name, Diana, was chosen to honor her beloved late grandmother, The Princess of Wales."

"This is the second child for the couple, who also have a two-year-old son named Archie Harrison Mountbatten-Windsor. The Duke and Duchess thank you for your warm wishes and prayers as they enjoy this special time as a family."

A personal message from Meghan, 39, and Prince Harry, 36, on their Archewell website said: "On June 4th, we were blessed with the arrival of our daughter, Lili. She is more than we could have ever imagined, and we remain grateful for the love and prayers we've felt from across the globe. Thank you for your continued kindness and support during this very special time for our family."

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The couple announced Meghan's pregnancy on Valentine's Day, sharing, "We can confirm that Archie is going to be a big brother. The Duke and Duchess of Sussex are overjoyed to be expecting their second child."

Lilibet's arrival makes Archie, who turned 2 last month, a big brother.