Within the scope of this study, the most recent advancements in sulfonation-based functionalization of lignin are comprehensively discussed. In addition to being the most abundant natural source of aromatic chemicals, lignin is also a large component of lignocellulosic biomass, making it an attractive feedstock for environmentally responsible chemical synthesis. The process of lignin valorization is an essential component of the recently proposed biorefinery setup. It is possible that the peculiar structure and composition of lignin will provide a number of potential efficient methods for the generation of a wide variety of bulk chemicals and chemical compounds that are valuable. The most recent advancements in lignin functionalization via the usage of sulfonation-based materials are investigated in this chapter, as well as the ways in which these materials have been used in the fields of energy storage, pollution removal, and catalysis. The possible future paths for the development of functional materials based on lignin are discussed, with a particular emphasis placed on the businesses that may stand to profit from the utilization of these sulfonated materials. Through the logical design of functionalized lignin-based materials, this chapter elucidates the possibility to construct a wide family of hybrid functional carbon materials. These materials offer a wide range of applications that might be helpful in developing a future that is more sustainable and favorable to the environment.