The present invention relates to a method of producing lignin with reduced amount of odorous substances comprising the steps of: i) dissolving isolated lignin into an alkali solution; ii) adding to the solution C1-C4-alcohol in an amount of less than 30% by weight, based on the dry weight of the isolated lignin; and iii) re-precipitating lignin by acidifying the solution. The invention also relates to a lignin product with reduced odor obtained and/or obtainable by the method and to the use of the obtained lignin as a component in polymer blends, an additive or filler in building materials, as binding agent in adhesives, and/or for the production of a carbon fiber, especially in indoor applications.