Lignin, a naturally occurring polymer, was viewed as a potential substitute of carbon black for reinforcing rubber materials. However, it shows no reinforcing effect if directly mixed with rubber. In this study, lignin was in situ dispersed at submicrometer size and highly compatible with epoxidized natural rubber (ENR) by using a high-temperature dynamic heat treatment (HTDHT). Rheology analysis indicated that the ring opening reaction between lignin and ENR occurred at 160 C or above, which was further confirmed by infrared spectroscopy. Due to the consumption of acidic groups of lignin by ENR, the retardant vulcanization effect of lignin was weakened. Morphology observation and dynamic mechanical analysis demonstrated the perfect lignin dispersion and the strong interactions between lignin and ENR. The mechanical properties of the lignin/ENR composites were significantly improved by using HTDHT. Compared to the directly mixed rubber composites, the tensile strength and tear strength of the heat treated rubber composites filled with 40 phr lignin were increased by 114% and 23%, respectively. Especially, the 300% modulus of the heat treated rubber composite was increased by ca. 400%. X-ray diffraction results indicated that the reinforcement of the composites originated from the presence of lignin rather than the strain-induced crystallization of ENR.