Over the last several years, lignin hydroxypropylation with propylene oxide (PO) has been used as the main strategy to overcome lignin limitations, such as its low reactivity, poor dispersion, and high stiffness, in the context of polyurethane (PU) synthesis. However, PO is a flammable, toxic, and carcinogenic compound. Propylene carbonate (PC), a compound with low toxicity and biodegradability, has emerged as a feasible alternative to PO. Although this compound has potential for use in syntheses, lignin hydroxypropylation with PC has not yet been explored in PU synthesis. In this work, PU adhesives are synthesized using castor oil (CO) and hydroxypropylated lignin via the reaction with PC (HKL_PC) as a polyol. HKL_PC is incorporated in CO at different concentrations (10 wt%, 20 wt%, and 30 wt%). Curing kinetics is investigated with temperature‐modulated optical refractometry (TMOR). Dynamic mechanical analysis (DMA) demonstrates an increase in Tg after lignin addition. Furthermore, Young's modulus and practical adhesion are improved with increasing HKL_PC concentration. Results prove that hydroxypropylation with PC is a feasible method for lignin‐based PU synthesis and reveals the potential of this approach as an alternative for the PO‐based method.