Lignins are the most important aromatic renewable natural resource today, serving as a sustainable, environmentally acceptable alternative feedstock to fossil‐derived chemicals and polymers in a vast scope of value‐added applications. Lignin is a biopolymeric molecule that, together with cellulose, is a fundamental component of higher vascular plants structural cell walls. It can be extracted from by‐products of the pulp and paper industries, agricultural waste and residues, and biorefinery products. Lignin properties may vary depending on source and extraction method with carbon and aromatic as the main compositions in lignin structure. These rich compositions make lignin more valuable, allowing for the creation of high‐value‐added green composites. However, the complex structure of lignin creates low reactivity to interact with crosslinker, and hence chemical modification is substantial to overcome this problem. This review aimed to present and discuss lignin structure, variation of lignin chemical properties regarding its source and extraction process, recent advances in chemical modification of lignin to enhance its reactivity, and potential applications of modified lignin for manufacturing value‐added biocomposites with enhanced properties and lower environmental impact, such as food handling/packaging, seed coating, automotive devices, 3D printing, rubber industry, and wood adhesives.

After cellulose, lignin is the most commonly used natural polymer in green biomaterials. Pulp and paper mills and emerging cellulosic biorefineries are the main sources of technical lignin. However, only 2–5% of lignin has been converted into biomaterials. Making lignin-based polymer biocomposites to replace petroleum-based composites has piqued the interest of many researchers worldwide due to the positive environmental impact of traditional composites over time. In composite development, lignin is being used as a filler in commercial polymers to improve biodegradability and possibly lower production costs. As a natural polymer, lignin may have different properties depending on the isolation method and source, affecting polymer-based composites. The application has been affected by the characteristics of lignin and the uniform distribution of lignin in polymers. The review’s goal was to provide an overview of technical lignin extraction, properties, and its potential appropriate utilization. It was also planned to revisit the lignin-based composites’ preparation procedure as well as their composite characteristics. Solvent casting and extrusion methods are used to fabricate lignin from polymeric matrices such as polypropylene, epoxy, polyvinyl alcohol, polylactic acid, starch, wood fiber, natural rubber, and chitosan. Packaging, biomedical materials, automotive, advanced biocomposites, flame retardant, and other applications for lignin-based composites has existed. As a result, the technology is still being refined to increase the performance of lignin-based biocomposites in several applications. This review could assist explain lignin’s position as a composite additive, which could lead to more efficient processing and application strategies.

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