Nanoparticles and hydrocolloids have become essential ingredients in many technical, food, and life science applications. Biobased nanoparticles are emerging as multifunctional alternatives to fossil-derived and conventional nanoparticles such as polystyrene or silica nanoparticles. Lignin is a plant based polyphenol that allows trees to have a strong structure and protection against pests and microorganisms. Considering its inherent attractive properties such as high carbon content (> 60 atom%) and thermal stability, biodegradability, antioxidant activity, and the absorbance of UV irradiation, lignin has emerged as a prime candidate for biobased nanoparticles and nanohybrids. In this context, the advent of lignin hydrocolloids has transformed the possibilities of using lignin in many prospective end-uses. Especially the spherical and colloidally stable lignin nanoparticles (LNPs) display benefits compared to crude lignin powders that are poorly soluble in many common solvents and heterogeneous both in molecular weight and distribution of reactive groups in its backbone. In addition to its intrinsic functional groups, covalent functionalization of lignin has already been proven to be very useful in extending applicability of LNPs. For instance, Zhao et al. aminated lignin prior to the particle formation and demonstrated the corresponding LNPs for the conjugation of histidine for pH-responsive drug release in cancer treatment. Our group discovered that nanoparticles prepared from lignin oleate show long-term stability under acidic (pH 2) and alkaline (pH 12) conditions without any crosslinking. Although these two examples highlight functional LNPs, these approaches suffer from one of the two limitations (i) loss of particles if exposed to basic pH or organic solvents and (ii) consumption of free aliphatic and phenolic hydroxyl groups. This limits the processibility and recycling of LNPs in common chemical processes which involve aqueous alkali and organic solvents. Additionally, it would be important to preserve the free phenolic hydroxyl groups that are the prime functionalities defining biodegradability redox activity and antimicrobial activity of lignin.