This chapter discusses the potential for recovering lignin from the pulp and paper industry as an industrial resource for various applications by transforming it from the status of waste. An overview of traditional and innovative ways of lignin recovery, including the Kraft process and organosolv recovery, together with the most recent trends, such as ultrasonic-assisted recovery and ionic liquid methods, is given at the beginning. This chapter covers various applications for which the recovered lignin can be used, ranging from environmental remediation as an excellent adsorbent to developing energy storage solutions, like batteries and supercapacitors, and construction materials for improving structural properties. It enlists the challenges associated with scale-up of lignin recovery and application based on the variability in structure and composition of lignin, economic viability, and establishment of standardized protocols. The chapter concludes with the note of future research directions, focusing on advanced recovery methods and the optimization of lignin properties for specific applications, coupled with sustainable technologies in enhancing the role of lignin toward a circular economy. Specific research is thus deemed necessary for the development of advanced recovery methods, the adjustment of lignin properties to suit the requirements of its various applications, and the sustainable technologies that could enhance the role of lignin within a circular economy.