I saw a mod once with the philosopher stone as part of an Aylied home but does one exist somewhere in the lore?
Just wondering since the philosopher stone is usually tied with Alchemy.

None that I am aware of. I mean, why would we need one, when there are scrolls that can transmute iron to silver, silver to gold?

I have not heard any mention of a Philospher's Stone in the Elder Scrolls, and considering that alchemy in the Elder Scrolls is just mixing up various ingredients into potions, as opposed to actually transmuting one material into something else, I'm not sure what sort of role it would play, unless it's effects also differ from what it is generally said to do, so I'd say that, unless any mention of the Philospher's Stone is made, we can assume it does not exist.

Transmutation does exist, in the form of scrolls, as Hellmouth has pointed out.

The fact of the matter is that new lore is added in each game. A Philosopher's Stone hasn't been mentioned - YET.

But we have Transmutation as a matter of fact - and we have observed many stones with magical properties. Some hold souls, some replenish magicka or the charge of many items simultaneously. It seems to me as if such an item could easily fit within the context of the Universe we're dealing with here.

Perhaps very powerful wizards can use Transmutation as a spell by harnessing the magicka in their own bodies, but lesser scholars rely on stones or the cheaper one-use scrolls as an alternative. Tamriel's vast wealth could even be partially explained by castle-mages with the ability to turn lumps of stone into lumps of gold. It's a very interesting idea to play around with. It might even make an amusing fan fic or RP. "What happens when transmutation goes wrong and our hero develops the midas touch?"

Characteristic human logic - obsessed with material wealth they are - it does not occur to them that alchemy may refer to things outside of the physical.

That 'philosophers stone' has been present for a while.

Think sideways.

I always thought of alteration as "alchemy"

I always thought that those transumutation scrolls were the result of a spell ? there weren't enough to change all the rock flung out by those angy kjiits.

But couldn't that same spell enchant a stone?

easily, I never said it couldn't. But It would have to be more metallic to (IMO) hold a strong enchantment.

According to Daggerfall, a precious gemstone would be ones best choice - especcially diamonds

I just haven't played that game enough. Thanks for correcting me.