The development of bio-based nanocomposites is of extreme significance in the current environmental situation and hence the progression as well as modification of lignin based nanocomposites is gaining potential research interest. Often treated as a wood waste, lignin is generated as an unwanted component during the production of ethanol and paper. Being a biopolymer with cross-linked structure and an imperative renewable material with antioxidant property, high thermal stability, biodegradability and UV absorption characteristics, lignin could be effectively employed in numerous prospective applications. Introducing various functionalities into lignin transforms it into a valuable material in the composite arena. The key aim of this review is to summarize the synthesis methods and functionalization of lignin nano particles along with the applications of lignin based nanocomposites thereby creating awareness towards the sustainable utilization of waste lignin in the environment. (C) 2020 Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.