As a major component of lignocellulosic biomass, lignin is one of the largest natural resources of biopolymers and, thus, an abundant and renewable raw material for products, such as high-performance fibers for industrial applications. Direct conversion of lignin has long been investigated, but the fiber spinning process for lignin is difficult and the obtained fibers exhibit unsatisfactory mechanical performance mainly due to the amorphous chemical structure, low molecular weight of lignin, and broad molecular weight distribution. Therefore, different textile spinning techniques, modifications of lignin, and incorporation of lignin into polymers have been and are being developed to increase lignin’s spinnability and compatibility with existing materials to yield fibers with better mechanical performance. This review presents the latest advances in the textile fabrication techniques, modified lignin-based high-performance fibers, and their potential in the enhancement of the mechanical performance.