1) Nick lent her the book, but she didn't return it yet.
2) Nick lent her the book, but she hasn't returned it yet.
Which is grammatically correct and sounds natural?
Note that the first is decidedly AmE. A Brit would find it sounds odd, and would prefer 2).
I very much prefer the second version.
If you question had been:
What's the difference between
1) Nick lent her the book, but she didn't return it.
2) Nick lent her the book, but she hasn't returned it.
I would have answered that in the second sentence, the book could still be returned (an implied 'yet'), but in the first sentence, the book won't ever be returned.
This is why I don't like the combination of 'didn't' and 'yet'.
Hope that made sense![]()
Actually, with the adverb "yet" at the end, I don't like the AmE version much either, though it is typical here in North America.