In the magnetic confinement fusion device, the first wall as plasma facing components will directly affect the performance of high temperature plasma. And the interaction of plasma and materials also affect the life of the first wall. Liquid lithium first wall receives more and more attention due to the properties of repairing itself and effectively inhibiting boundary particle recycling. So the research of the interaction between liquid lithium wall and plasma is particularly important. Erosion and deposition characteristics of lithium and its influence on the performance of plasma during lithium limiter experiment in HT-7 device are studied in-depth in this paper. Experimental results show that when the interaction between Li and plasma is weak, Li enters into the plasma mainly by weak surface evaporation and sputtering. During this process, Li line emission is strengthened, impurity and hydrogen recycling is decreased resulting in the improvement of plasma performance. When the interaction between Li and plasma becomes extremely strong, it is found so many big scale Li droplets ejected from liquid lithium surface to cause intense Li efflux into plasma, leading to plasma discharge disruption. Li atoms coming from Li limiter are ionized in the scrape-off layer (SOL), and entered into hot plasma column as ions (Li+, Li2+, Li3+) and transported in plasma. After the experiment, it can be found that a lot of white spots distributed in the vacuum chamber wall, with its main composition being Li2CO3 by XPS analysis. Through observing Li spot distribution and analyzing the lithium film thickness by scanning electron microscopy (SEM) in different samples, it is observed that the lithium is primarily deposited around the limiter, but the number of Li spots is more at the low field side than that at the high field side of the device, and the Li film gradually becomes thinner along the toroidal direction of the HT-7 device, leading to the non-uniformity of impurity and hydrogen recycling. The experiment may provide a reference for studying the interaction of plasma and liquid lithium first wall and the application of liquid lithium first wall in future tokamak device.