In the present study, the possibility of development of a wood adhesive using coffee bean shell lignin (Cbsl) has been explored. Cbsl-modified phenolic adhesive has been prepared by replacing phenol with lignin at different weight percents. The optimization of weight percent lignin incorporation was carried out with respect to mechanical properties. It was found that up to 50 wt% of phenol could be replaced by Cbsl to give lignin-phenol-formaldehyde adhesive (LPF) with improved bond strength in comparison to control phenol-formaldehyde (CPF). Optimized LPF and CPF adhesives were characterized by IR, DSC and TGA. The IR spectrum of LPF showed structural similarity to CPF. Thermal stability of LPF adhesive was found to be lower as compared to that of CPF. DSC studies revealed a higher rate of curing in the LPF adhesive.