A simple and environmentally benign synthetic route to lignin-based epoxy resins is highly desirable. Alkali lignin and glyoxal are promising renewable and sustainable alternatives to phenol and formaldehyde, respectively. Their use is demonstrated to produce lignin-phenol-glyoxal novolac epoxy resins (LPG-NERs) through a simple one-pot synthesis. Flame retardancy of LPG-NERs was improved by functionalization with a N, S modified 9, 10-dihydro-9-oxa-10-phosphaphenanthrene-10-oxide (DOPO) material (termed DBS) obtained via nucleophilic reaction between DOPO and a N, S containing intermediate. FTIR and 1H NMR analyses confirmed the successful fabrication of LPG-NERs and SBD. The introduction of lignin and SBD reduced crosslinking of the epoxy network, weakening mechanical properties, but conferred excellent flame retardancy (including vapor and condensed phases) as determined by LOI (34.5%), UL-94 (V-0 rating), and cone calorimetry tests (lower heat release and smoke production, and higher char formation). The SBD structure imparted a desirable vapor mechanism (blowing out phenomenon caused by the fire quenching effect of PO•/PO2• radicals and dilution effect from non-condensable gases such as NH3, N2, SO2), while lignin (a natural biochar precursor) in synergy with SBD imparted superior charring performance.