Modern science focuses on sustainability-oriented innovation. Structurally sophisticated lignin is a sustainable alternative to non-renewable resources. Over the last several years, a tremendous scientific effort has been made to innovate lignin-based sustainable materials for numerous advanced applications. The lignin's phenolic, methoxyl and aliphatic hydroxyl functional groups are biologically and chemically active, making it conducive to developing state-of-the-art biomedicine, food packaging, crop protection, and catalyst materials. The biocidal effect of lignin rests on the phenolic compounds, specifically the double bond in α, β positions of the side chain, and a methyl group in the γ position. Also, depending on the biomass source and the pulping method, lignins possess different biocidal and antioxidant properties. The abundant hydroxyl groups in lignin are metal reductants and possess capping ability for the nanoparticles (NPs). This review focused on lignin's bioactivity mechanism, including antimicrobial efficacy and antioxidant properties. Lignin-based micro/nanocomposites and their application on food packaging, plant protection, and growth will also be explored. We will also review the application of lignin as a reducing and capping agent for the synthesis of metal NPs.