The construction industry in the 21st century faces numerous global challenges associated with growing concerns for the environment. Therefore, this review focuses on the role of lignin and its derivatives in sustainable construction. Lignin's properties are defined in terms of their structure/property relationships and how structural differences arising from lignin extraction methods influence its application within the construction sector. Lignin and lignin composites allow the partial replacement of petroleum products, making the final materials and the entire construction sector more sustainable. The latest technological developments associated with cement composites, rigid polyurethane foams, paints and coatings, phenolic or epoxy resins, and bitumen replacements are discussed in terms of key engineering parameters. The application of life cycle assessment in construction, which is important from the point of view of estimating the environmental impact of various solutions and materials, is also discussed.