Oxyalkylation is a significant development in using lignin, a complex and underutilized biopolymer obtained from lignocellulosic biomass. This process incorporates functional groups into the lignin structure, increasing its reactivity and compatibility with various applications. This chapter thoroughly explores the chemistry, mechanisms, and practical uses of lignin oxyalkylation, offering a comprehensive summary of the current research progress and future possibilities. The study investigates the capacity of oxyalkylated lignin to generate high-value products such as adhesives, coatings, and polymer composites. It aims to promote the development of sustainable materials and decrease dependence on petrochemicals.