This study involves the production of hydrocarbons from lignin extracted from sugarcane bagasse using Hydrothermal Liquefaction (HTL) followed by Hydrodeoxygenation (HDO). HTL of the lignin was studied under different solvents-methanol, ethanol and isopropanol in the presence of formic acid as an effective H-donor under varying lignin to solvent ratios (L:S = 1:15,1:30,1:40 g/mL), reaction temperatures (200 °C - 320 °C), reaction times (15, 30, 45,60 min) and ZnCl2 catalyst concentrations (30, 40, 50, 60 wt%). A maximum of 86% lignin derived phenolics was obtained when ethanol was used as solvent at 250 °C under L:S = 1:30 at 30 min reaction time with 60 wt% ZnCl2. The lignin-oil was upgraded by HDO process in the presence of Ni/Al2O3 catalyst and a maximum hydrocarbon yield of 73.5% was obtained with a HHV value of 48 MJ/kg. The hydrocarbons had excellent properties with a carbon range of C6–C12 with a purity of 51.2%.