Slow-release fertilizers hold promise for their extensive use in agriculture. Urea, a commonly employed fertilizer, poses the risk of elevated nitrogen levels in soil due to its water solubility when used improperly. To address this issue, the development of a cost-effective and biodegradable urea slow-release matrix was pursued by crosslinking wheat straw-derived lignin with epichlorohydrin at varying ratios (1:1, 1:2, and 2:1) and subsequently impregnating it with urea. The crosslinked lignin matrices exhibited superior properties compared to unmodified lignin. After 8 days of immersion in water, the percentage release of urea from the crosslinked lignin matrices reached 48%, whereas it was 95% for unmodified lignin. Characterization techniques such as Fourier transform infrared spectroscopy, 13C nuclear magnetic resonance, and thermogravimetry analysis were employed to gain insights into the structural and functional aspects of the crosslinked lignin. The results revealed that the crosslinked lignin possessed a higher surface area and exhibited more suitable functional groups for urea impregnation. The controlled hydrophilic-lipophilic balance of the crosslinked lignin matrices offers significant advantages in fertilizer systems, enabling a controlled and gradual release of urea. This innovative approach not only offers enhanced control over nutrient delivery but also demonstrates the potential of lignin as a sustainable and cost-effective alternative for slow-release fertilizer formulations. This development provides an effective solution to address the issue of excessive nitrogen levels and opens up new avenues in material development, holds promise for sustainable agriculture and paves the way for further advancements in the field.