Carbon fibers (CFs) are fabricated by blending hardwood kraft lignin (HKL) and cellulose. Various compositions of HKL and cellulose in blended solutions are air-gap spun in 1ethyl-3-methylimidazolium acetate (EMIM OAc), resulting in the production of virtually bead-free quality fibers. The synthesized HKL−cellulose fibers are thermostabilized and carbonized to achieve CFs, and consequently their electrical and mechanical properties are evaluated. Remarkably, fibers with the highest lignin content (65%) exhibited an electrical conductivity of approximately 42 S/cm, surpassing that of cellulose (approximately 15 S/ cm). Moreover, the same fibers demonstrated significantly improved tensile strength (∼312 MPa), showcasing a 5-fold increase compared to pure cellulose while maintaining lower stiffness. Comprehensive analyses, including Auger electron spectroscopy and wide-angle X-ray scattering, show a heterogeneous skin−core morphology in the fibers revealing a higher degree of preferred orientation of carbon components in the skin compared to the core. The incorporation of lignin in CFs leads to increased graphitization, enhanced tensile strength, and a unique skin−core structure, where the skin's graphitized cellulose and lignin contribute stiffness, while the predominantly lignin-rich core enhances carbon content, electrical conductivity, and strength.