This review article explores the potential of lignin as a sustainable alternative to conventional petroleum-based adhesives. Conventional adhesives derived from petroleum sources have been widely used in industrial, medical, and household applications. However, the depletion of petroleum resources and environmental and human health concerns have prompted the search for bio-based and environmentally friendly alternatives. Lignin, a biodegradable substance abundant in nature, has emerged as a promising substitute due to its non-toxic nature, three-dimensional structure, and functional groups. Replacing the chemicals used in conventional adhesives with lignin can reduce production costs, and the resulting adhesives exhibit decreased toxicity. Furthermore, lignin can be combined with biobased materials to create bio-based adhesives. This article provides an overview of lignin extraction methods, explores the diverse applications of lignin in various industries, discusses chemical modifications of lignin, and specifically focuses on the production of lignin-based adhesives. Finally, the challenges associated with lignin-based adhesive production are addressed.