In order to elucidate the decomposition behavior of lignin from Japanese cedar (Cryptomeria japonica) as treated by two-step semi-flow hot-compressed water (1st stage: 230°C/10 MPa/15 min, 2nd stage: 270°C/10 MPa/ 15 min), water-soluble portion, precipitate, and water-insoluble residue obtained by hot-compressed water treatment were separated and characterized. Consequently, the watersoluble portion was found to contain lignin-derived monomeric compounds such as coniferyl alcohol and coniferyl aldehyde and b-1, b-5, and 5-5 0 linked dimeric compounds. These lignin-derived compounds maintained methoxyl and phenolic hydroxyl groups in aromatic rings. The water-soluble portion also contained lignin-derived oligomeric compounds up to heptamers. In contrast, the precipitate was found out to consist of higher molecular weight lignin with high ether type linkages. The water-insoluble residue, however, consisted mostly of lignin with high condensed type linkages. Based on these lines of evidence, condensed type lignin must be resistant to hotcompressed water and remain as water-insoluble residue after two-step treatment. Such information provides a clue as to efficient utilization of lignin-derived products.