Poly(ε‐caprolactone)‐grafted‐lignin (PCL‐g‐lignin) copolymers with 2 to 37 wt % lignin are employed to study the effect of lignin on the morphology, nucleation, and crystallization kinetics of PCL. Lignin displays a nucleating action on PCL chains originating an intersecting lamellar morphology. Lignin is an excellent nucleating agent for PCL at low contents (2–5 wt %) with nucleation efficiency values that are close to or >100%. This nucleating effect increases the crystallization and melting temperature of PCL under nonisothermal conditions and accelerates the overall isothermal crystallization rate of PCL. At lignin contents >18 wt %, antinucleation effects appear, that decrease crystallization and melting temperatures, reduce crystallinity degree, hinder annealing during thermal fractionation and significantly retard isothermal crystallization kinetics. The results can be explained by a competition between nucleating effects and intermolecular interactions caused by hydrogen bonding between PCL and lignin building blocks. © 2015 Wiley Periodicals, Inc. J. Polym. Sci., Part B: Polym. Phys. 2015, 53, 1736–1750