The rising environmental concerns and the growing demand for renewable materials have surged across various industries. In this context, lignin, being a plentiful natural aromatic compound that possesses advantageous functional groups suitable for utilization in biocomposite systems, has gained notable attention as a promising and sustainable alternative to fossil-derived materials. It can be obtained from lignocellulosic biomass through extraction via various techniques, which may cause variability in its thermal, mechanical, and physical properties. Due to its excellent biocompatibility, eco-friendliness, and low toxicity, lignin has been extensively researched for the development of high-value materials including lignin-based biocomposites. Its aromatic properties also allow it to successfully substitute phenol in the production of phenolic resin adhesives, resulting in decreased formaldehyde emission. This review investigated and evaluated the role of lignin as a green filler in lignin-based lignocellulosic composites, aimed at enhancing their fire retardancy and decreasing formaldehyde emission. In addition, relevant composite properties, such as thermal properties, were investigated in this study. Markedly, technical challenges, including compatibility with other matrix polymers that are influenced by limited reactivity, remain. Some impurities in lignin and various sources of lignin also affect the performance of composites. While lignin utilization can address certain environmental issues, its large-scale use is limited by both process costs and market factors. Therefore, the exact mechanism by which lignin enhances flame retardancy, reduces formaldehyde emissions, and improves the long-term durability of lignocellulosic composites under various environmental conditions remains unclear and requires thorough investigation. Life cycle analysis and techno-economic analysis of lignin-based composites may contribute to understanding the overall influence of systems not only at the laboratory scale but also at a larger industrial scale.
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