Lignin is one of the most important and widespread carbon sources on Earth. Significant amounts of lignin are delivered to the market by pulp mills and biorefineries, and there have been many efforts to develop routes for its valorization. Over the years, lignin has been used to produce biobased chemicals, materials, and advanced biofuels on the basis of its variable functionalities and physicochemical properties. Today, lignin’s applications are still limited by its heterogeneity, variability, and low reactivity. Thus, modification technologies have been developed to allow lignin to be suitable for a wider range of attractive industrial applications. The most common modifications used for this purpose include amination, methylation, demethylation, phenolation, sulfomethylation, oxyalkylation, acylation or esterification, epoxidation, phosphorylation, nitration, and sulfonation. This article reviews the chemistry involved in these lignin modification technologies, discussing their effect on the finished product while presenting some market perspectives and future outlook to utilize lignin in sustainable biorefineries.