Phenolic foams (PFs) are lightweight (<200 kg/m3), high-quality, and inexpensive thermal insulation materials whose heat and fire resistance are much better than those of foam plastics such as polyurethane and polystyrene. They are especially suitable for use as insulation in chemical, petroleum, construction, and other fields that are prone to fires. However, PFs have poor mechanical properties, poor abrasion resistance, and easy pulverization. In this paper, a polyurethane prepolymer was treated with an isocyanate, and then the isocyanate-terminated polyurethane prepolymer and poplar powder were used to prepare modified lignin-based phenolic foams (PUPFs), which improved the abrasion resistance and decreased the pulverization of the foam. The foam composites were comprehensively evaluated by characterizing their chemical structures, surface morphologies, mechanical properties, thermal conductivities, and flame-retardant properties. The pulverization ratio was reduced by 43.5%, and the thermal insulation performance and flame-retardancy (LOI) were improved. Compared with other methods to obtain lignin-based phenolic foam composites with anti-pulverization and flame-retardant properties, the hybrid reinforcement of foam composites with an isocyanate-terminated polyurethane prepolymer and poplar powder offers a novel strategy for an environmentally friendly alternative to the use of woody fibers.