Lignin, a phenolic‐rich biomass component, holds promise for producing value‐added products. However, its complex structure and recalcitrance present challenges for its effective utilization. To overcome this, a AuPd/Li−Al layered double hydroxide (LDH) catalyst was developed to facilitate lignin depolymerization. Various AuPd bimetallic nanoparticle compositions were supported on a basic Li−Al LDH support via a sol‐immobilization method and characterized using N2‐physisorption, X‐ray photoelectron spectroscopy (XPS), and transmission electron microscopy (TEM). The catalysts were then evaluated in the oxidation of several benzylic alcohols using O2 as the oxidant, from which Au7Pd3/Li−Al LDH and Au1Pd1/Li−Al LDH were identified as possessing promising catalytic activity. Further investigations focused on the aerobic oxidation of β‐O‐4 linked lignin model dimers under atmospheric pressure. The tested catalysts demonstrated sequential oxidation of the model compounds, leading to cleavage of the β‐O‐4 linkage. Finally, the catalysts were applied to the oxidative deconstruction of γ‐valerolactone (GVL) extracted maple lignin at 120 °C. Au1Pd1/Li−Al LDH emerged as the most effective catalyst, yielding a range of aromatic monomers with a total monomer yield of 27 %. These results highlight the potential of the Au1Pd1/Li−Al LDH catalyst system as an eco‐friendly approach for lignin depolymerization under mild conditions.