Lignin is a promising dispersant due to its hyperbranched polymer structure, low cost, renewability and abundant availability. However, its use is limited by its broad molecular weight distribution, inhomogeneity, and low content of hydrophilic functional groups. In this work, lignin was functionalized with alkaline amino acids (EHL-AA) to enhance water solubility and molecular weight uniformity. The results showed that EHL-AA significantly improved the dispersion of pigment Red 57:1 (P.R.57:1) in aqueous solutions, reducing the required dosage by 50 % compared to commercial small-molecule dispersants. Additionally, histidine modified lignin (EHL-His) exhibited superior stability for P.R.57:1 compared to commercial lignosulfonate (REAX 85A). Molecular dynamics simulations further revealed that showed that EHL-His had the highest electrostatic potential difference and the largest absolute value of negative ESP. The adsorption of EHL-His onto the P.R.57:1 surface followed the pseudo-second-order kinetic model and the Langmuir model, with EHL-His showing a higher Langmuir constant (b) than REAX 85A, indicating the strongest interaction with the pigment. In summary, this work advances pigment dispersion technology and promotes the high-value utilization of lignin.