While lignin has been gaining wide research interest for a variety of applications across many industries, relatively little work has been published on its applications in nonwovens. Consequently, this article offers an overview of the underlying principles and both the present and future applications of lignin within the nonwoven industry. Due to the distinct structure of lignin, processing, fiber production, composites with polymers, dye dispersant, and fire-retardant applications are all unique opportunities for lignin application in nonwovens discussed in this review. Conventional nonwoven processing techniques, such as electrospinning, have been reported to successfully produce lignin-based nonwovens, specifically lignin/polymer composite nonwovens. This account points to pivotal polymer matrix/lignin composite compatibility issues that define various processing technologies. However, lignin use is not limited to incorporation within nonwoven fibers mats and is currently used in dye dispersion with the potential of phase out petroleum-based dye dispersants. Finally, the high phenolic content of lignin endows it with fire-retardant and antimicrobial properties, among others, that present additional opportunities for lignin in the nonwoven industry. Throughout this review, an effort is made to outline the advantages and challenges of using lignin as a green and sustainable ingredient for the production of nonwoven materials.