A two-stage process for delignification of sugarcane bagasse with alkali and peracetic acid (PAA) to produce of pulp, ethanol and lignin products was reported. By this process, sugarcane bagasse can be converted to high-quality pulp, ethanol and lignin products under mild conditions. The obtained pulp had higher brightness and superior strength properties than corresponding kraft pulp. The pulp was also very easy to digest by cellulase, and well suitable for simultaneous saccharification fermentation (SSF) to produce ethanol. The obtained lignins were characterized by several chemical and instrumental analyses. It was found that PAA lignin had higher oxygen content and lower molecular weight. This process is environment-friendly because no sulfur and chlorine were introduced and less wastewater was let. It also can be easily fulfilled by improving a conventional pulping mill based on the existing equipments. (C) 2011 Elsevier Ltd. All rights reserved.