The construction sector faces challenges in meeting the increasing demand for bituminous pavements due to the limited availability of nonrenewable materials like aggregates and bitumen, necessitating the need for sustainable solutions. On the other hand, the requirement for high-quality materials for high-speed road networks highlights the need for modifying virgin bitumen. Lignin, a biopolymer abundant in wood biomass, emerges as a viable alternative that can partially replace virgin bitumen while also improving the mechanical strength and durability of bituminous mixtures. This review explores the rheological characteristics of asphalt modified with lignin, and mechanical parameters, providing insights into the possible benefits of lignin. Additionally, it comprehensively covers lignin attributes. This review presents a balanced analysis of the benefits and drawbacks of incorporating lignin into bituminous mixes, providing useful insights for sustainable asphalt technology. This review offers a roadmap for future research and development in the use of lignin-modified binders.