The stepwise pyrolysis of technical lignin with and without a catalyst was investigated by pyrolysis-gas chromatography/mass spectrometry (Py-GC/MS). Lignin was first pyrolyzed at 260 or 360 °C, and then the residue was subsequently pyrolyzed at 650 °C. It was found that stepwise pyrolysis of lignin concentrated the phenolic compounds in lignin-derived bio-oil. In a stepwise 260 to 650 °C process, the maximum total phenolic compounds were 86.2%. Among the phenolic compounds, guaiacol-type and phenol-type phenolic compounds were predominant. Further addition of a catalyst (HZSM-5) in the stepwise pyrolysis process enhanced control over the product distribution through conversion of phenolic compounds into aromatic hydrocarbon products. The aromatic hydrocarbons achieved the highest yield of 30.4% in the catalytic stepwise 260 to 650 °C process.