Over the past two decades, the global wood panel industry has witnessed a substantial increase in production and consumption, driven largely by the construction sector. However, the dominance of synthetic adhesives like phenol-formaldehyde, urea-formaldehyde, and melamine-formaldehyde has raised environmental concerns due to their toxic components derived from fossil resources. There has been a growing interest in bio-based adhesives derived from renewable materials like lignin to address these issues and promote sustainability within the wood panel industry. This chapter explores the potential of lignin-based adhesives, focusing on their development, challenges, and environmental impact, particularly in the context of veneer-based composites.