The potential of lignin, a naturally occurring polymer obtained from plant biomass, in biological applications is examined in this chapter. Research into the extraction, modification, and application of lignin is being prompted by its underutilization despite its abundance. The chapter examines the difficulties presented by the intricate phenolic structure of lignin and highlights the effects of extraction techniques such as the Kraft, sulfite, alkaline and organosolv procedures on the characteristics of lignin. The creation of lignin-based nanomaterials, including nanoparticles, as well as chemical changes that improve lignin’s functioning are also covered. The appealing uses of lignin nanoparticles in tissue engineering and drug and gene delivery are highlighted, as they enhance scaffold characteristics and drug stability. Overall, nanomaterials based on lignin present promising prospects in the biomedical domain; nonetheless, additional investigation is required to broaden their use in healthcare solutions.