Can you Lilting Lullaby on Time Warp and if so what happens?

Yes, you can play Lilting Lullaby in response to Time Warp.

Interaction Sequence

1. Player A plays Time Warp (paying its cost and placing it on the chain).
2. Player B plays Lilting Lullaby as a [Reaction] targeting the Time Warp on the chain.
3. The chain resolves in LIFO (Last-In, First-Out) order:
   • Lilting Lullaby resolves first. It counters the Time Warp.
   • Per Rule 425.1.a, the Time Warp is cleared from the chain and does nothing. Because it was countered, it is not considered to have been "played" (Rule 425.1.b), and its effect (taking an extra turn) does not occur.
   • Lilting Lullaby’s secondary instruction ("Its controller can't play spells this turn") now applies to Player A.

Outcome

• Time Warp is countered and does not resolve; Player A does not get an extra turn.
• Player A is prohibited from playing any further spells for the remainder of the current turn because the secondary effect of Lilting Lullaby successfully resolved.

This is my interpretation based on the standard rules for countering and spell resolution (Rule 425) and the text retrieved for both cards. No official FAQ exists for this specific card interaction.