This study presents a method for the self-formation of lignin particles within a polylactic acid (PLA) matrix during melt-extrusion, eliminating the need for separation and drying steps typically associated with submicro-size lignin particles. This method effectively mitigates the problem of agglomeration often associated with the drying step. Softwood kraft lignin, guaiacyl lignin (GL-lignin), was dissolved in low-molecular-weight poly(ethylene glycol) (PEG) and was introduced into a twin-screw extruder using a liquid feeder. Lignin particles within a particle size range of 200-500 nm were observed in the extrudate of the PLA/PEG/GL-lignin composites. PLA/PEG/GL-lignin composite films were produced through blown film extrusion. These composite films demonstrated superior ultraviolet (UV)-barrier and antioxidant properties compared to neat PLA films, with optical and mechanical characteristics comparable to those of neat PLA. Moreover, migration values of the composite films in various food simulants were below regulatory limits, suggesting their potential for food packaging applications. This self-formation process offers a promising approach for utilizing lignin for PLA applications.