Abstract: In this study, commercially available softwood lignin was esterified with tall oil fatty acid (TOFA) and tested as barrier material in fiber-based packaging material. The modified lignin samples were applied with a bar coater forming an even coating on the paperboard substrate. A significant decrease in WVTR and OTR value was observed for paperboard coated with the modified lignin as well as pure TOFA used as a reference. In contrast to the TOFA coating, the modified lignin coatings exhibited a high and stable contact angle. The coating material did not affect the tensile strength of the paperboard. According to the results, the demonstration of the conversion of lignin into a value added product has been shown. Furthermore, the novel coating material shows promising properties for the development as sustainable barrier material in fiber-based packaging material to replace oil-placed barriers.