To study the feasibility and effect of compounding lignin and its derivatives to improve expansive soil, the physical properties, mechanical properties, and microstructure of the improved soil mixed with calcium lignosulfonate alone, calcium lignosulfonate and lignin fibers were investigated through indoor experiments and electron microscope scanning. Select samples with better performance for water stability tests, and discuss the improvement mechanism of expansive soil by combining macroscopic mechanical changes with microstructural characteristics. The research results show that the addition of calcium lignosulfonate can reduce the water content of the soil and enhance its strength of the soil. The overall performance is the best when the calcium lignosulfonate content is 3%. 3% calcium lignosulfonate compounded with 1.5% lignin fiber has the best all-around performance; the composite improved soil has a better pore-filling effect, the whole is more compact, and the connection between particles significantly enhances the strength, which greatly inhibits the development of cracks good water stability. Lignin and its derivatives compound improved expansive soil have better effect than traditional improvement methods, and have no pollution to the environment, which can provide a particular reference for engineering practice.