Dilute acid-based pretreatment represents one of the most important pretreatment technologies to reduce biomass recalcitrance and it has been successfully applied to a wide range of feedstocks. During this type of pretreatment, the relative lignin content usually increases partially due to the loss of carbohydrates. More importantly, it has been reported that the increase of lignin content after dilute acid pretreatment is mainly due to the formation of pseudo-lignin. Furthermore, the exact reaction mechanisms leading to the formation of pseudo-lignin is still under investigation. However, it has been proposed that rearrangement of hydroxymethylfurfural (HMF) or furfural can produce aromatic type of compounds which can further undergo polymerization reactions to from a lignin-like polyphenolic structures termed as pseudo-lignin. Likewise, this mini-review mainly covers recent advances in understanding the fundamentals of pseudo-lignin formation during dilute acid pretreatment, the impact of its formation on enzymatic hydrolysis, and how to suppress its formation during dilute acid pretreatment.