A girl and i have become pretty close, enough that people think we’re in a relationship but recently i found out she likes my friend and my friend also likes her. Idk what to do. Should i leave it and move on or pursue it?

If she likes your friend and he likes her back, it sounds like they should take a shot at dating each other. There is very little to “pursue” if she isn’t interested in you. Don’t pressure her change the terms of your relationship if you have no reason to believe she wants that.