A novel and environmentally friendly lignin based lubricant composition in the form of oil, gel, grease, paste, solid, or water/glycol emulsion comprising lignin and/or its derivatives with a dosage ranging from 0.01 to 95 wt %, preferably 0.1% to 80 wt %, or even more preferably 0.5 to 60 wt % dispersed in at least one or more components selected from 1) base oils, 2) surfactants or coupling agents, 3) lubricant additives, or 4) grease thickeners of soap or non-soap type whereupon the said composition was found to exhibit novel and synergistic performance benefits such as, but not limited to, antioxidancy, extreme pressure, antiwear, lubricity as well as a rheology modifying characteristics, e.g. thickening effect, for a broad range of lubricant, grease, or oil field drilling applications.