Lily, Squirrel Hunter

Lily loves to chase squirrels and rabbits in the yard. In fact, it's one of the few things that make her sprint out of the yard so that I'm chasing her down the alley screaming her name (obviously my neighbors think I'm totally sane). So I was out in the backyard and came around the back of the car to see Lily squaring off with a squirrel who was between myself and her. The squirrel sprinted under the car, and so did Lily which I'm pretty sure the squirrel did not expect because I heard a screech from under the car that told me it stopped and Lily caught it. Lily chased it to the garage and dove into the flowers to capture the squirrel again who was by now totally freaking out and trying to scale the garage, but kept falling down into the clutches of a shih tzu. Finally I realized that if Lily killed this squirrel, I would have to clean it up (not that Lily is that tough). So I picked her up and chased the squirrel away. Later, taking out the garbage I'm pretty sure I saw the exact same squirrel coming out to check out the yard. Could they have been playing? Did Lily make a friend instead of hunt a squirrel? I hope she doesn't make friends with all the rodents in the neighborhood.