In this study, a lignin-based hydrogel for wastewater treatment was prepared by incorporating kraft lignin (KL) into a poly (vinyl alcohol) (PVA) matrix. The underwater structural stability of the KL-PVA hydrogel was guaranteed through physicochemical crosslinking, involving freeze–thaw process and chemical crosslinking reaction. The KL-PVA hydrogel displayed superior compressive characteristics compared to the original PVA hydrogel. This improvement was attributed to the chemical crosslinking and the reinforcing effect of the incorporated KL microparticles. The incorporation of anionic KL microparticles into the PVA three-dimensional network structure enhanced the cationic methylene blue (MB) and crystal violet (CV) adsorption efficiency of the prepared KL-PVA hydrogel. The MB adsorption results were well explained by pseudo-2nd order kinetics model and Langmuir isotherm model. Electrostatic forces, hydrogen bonding and π-π stacking interactions were the main adsorption mechanisms between cationic dyes and KL surfaces, indicating the potential of KL-PVA hydrogel as an effective adsorption material. Moreover, regulating the molecular weight of PVA not only prevented lignin leakage from the KL-PVA hydrogel but also elevated the KL content within the hydrogel, consequently improving its dye removal performance. For KL-PVA hydrogel with high molecular weight PVA, the MB and CV adsorption capacities were 193.8 mg/g and 190.0 mg/g, respectively.