As one of the mainstream biodegradable materials, poly(butylene adipate-co-terephthalate) (PBAT) foams offer a sustainable alternative to traditional plastic foams, effectively reducing environmental pollution. However, the high cost and poor mechanical performance of PBAT foams impede their practical application. Herein, the glycidyl methacrylate-grafted biomass lignin (GML) was used to produce a PBAT/GML composite foam with good foaming performance and mechanical properties at high lignin-filling amounts by twin-screw melting free radical polymerization and supercritical CO2 foaming process. The compatibility of GML in the PBAT matrix was improved due to the formation of ester bonds in modified lignin, endowing the PBAT/GML (PGML) composite foam with exceptional foaming performance. Additionally, the mechanical properties of PGML composite foam were remarkably enhanced due to the introduction of the abundant aromatic structures of GML and the construction of a stable covalent crosslinking network. The compressive strengths and compression modulus of the PGML foam were improved by 2.53 times and 2.47 times, while its bending strength and bending modulus were improved by 1.27 times and 3.92 times compared to the neat PBAT. This research affords a new strategy for developing low-cost biodegradable biomass PBAT/lignin composite foam materials with good foaming performance and mechanical properties.Graphical abstract