The thermal insulation of buildings using wood fiber insulation boards (WFIBs) constitutes a positive contribution towards climate change. Thereby, the bonding of wood fibers using mainly petrochemical-based resins such as polymeric diphenylmethane diisocyanate (pMDI) is an important measure to meet required board properties. Still there is a need to reduce or partial substitute the amount of these kinds of resins in favor of a greener product. This study therefore focusses on the feasibility of reducing the amount of pMDI by 50% through the addition of 1% BioPiva 395 or Indulin as two types of softwood Kraft-Lignin and lignin rich canola hulls together with propylene carbonate as a diluent. A panel density of 160 kg/m3 and a thickness of 40 mm was aimed. The curing of these modified pMDI was investigated by using two types of techniques: hot-steam (HS) and innovative hot-air/hot-steam-process (HA/HS). The WFIBs were then tested on their physical-mechanical properties. The equilibrium moisture content (EMC) was determined at two different climates. An exemplary investigation of thermal conductivity was conducted as well. The WFIBs did undergo a further chemically based analysis towards extractives content and elemental (C, N) composition. The results show that it is feasible to produce WFIBs with lower quantities of pMDI resin and added lignin with enhanced physical-mechanical board properties, which were lacking no disadvantages towards thermal conductivity or behavior towards moisture, especially when cured via HA/HS-process.