Kraft lignin was catalytically graphitized to graphene-based nanostructures at high temperature under non-oxidative atmospheres. To obtain the best catalytic performance, a uniform catalyst–lignin mixture must be made by bonding transitional metal (M) ions to oxygen (O), sulfur (S) or nitrogen (N)-containing functional groups in kraft lignin. One of the strategies is to dissolve or disperse kraft lignin in a suitable solvent, whereby the polymer chains in the condensed lignin molecules will be detangled and stretched out while the functional groups are solvated, and when mixing lignin solution with catalyst metal solution, the solvated metal ions in an aqueous solution can diffuse and migrate onto lignin chains to form M-O, M-S, or M-N bonds during the mixing process. Therefore, solvent effects are important in preparing M–lignin mixture for production of graphene-based nanostructures. Fe–lignin precursors were prepared by dissolving lignin with different solvents, including water, methanol, acetone, and tetrahydrofuran (THF). Solvent effects on the catalytic performance, size and morphology of graphene-based nanostructures were investigated using X-ray diffraction (XRD), field emission scanning electron microscopy (FE-SEM), high resolution transmission electron microscopy (HRTEM), and nitrogen sorption measurements. The sizes, morphologies, and catalytic properties of the products obtained from Fe–lignin precursors are greatly influenced by the solvents used. It was found that Fe–lignin (THF) had the highest iron dispersion and the smallest iron particle size. Furthermore, Fe–lignin (THF) exhibited the best catalytic performance for graphitization of kraft lignin while the graphitization degree decreased in the order: Fe–lignin(THF) > Fe–lignin(Acetone) > Fe–lignin(methanol) > Fe–lignin(water).