Use your hands or a knife to peel the lychee, which is actually a fruit. The lychee has a hard, leathery exterior. The skin should be a pinkish-red color. If the skin is still green, the fruit is not ripe yet. Start by cutting the skin off the top of the lychee. You can push the top off with your thumb, or carefully cut around the top layer with a knife. After you cut the top, the rest of the skin comes off easily. Peel off the skin, and discard it.
Remove the seed from the middle of the lychee, and discard it. The seed is smooth and hard. Use your thumb to push part of the fruit off the seed, then dig out the stone. It is all right if the fruit tears.
Eat the flesh of the fruit. You may roll the fruit back into its former shape and place it in a serving bowl before eating it, especially if you are eating more than one.