The supply of affordable drinking and sufficiently clean water for human consumption is one of the world's foremost environmental problems and a large number of scientific research works are addressing this issue Various hazardous/toxic environmental contaminants in water bodies, both inorganic and organic (specifically heavy metals and dyes), have become a serious global problem. Nowadays, extensive efforts have been made to search for novel, cost effective and practical biosorbents derived from biomass resources with special attention to value added, biomass-based renewable materials. Lignin and (nano)material adorned lignin derived entities can proficiently and cost effectively remove organic/inorganic contaminants from aqueous media. As low cost of preparation is crucial for their wide applications in water/wastewater treatment (particularly industrial water), future investigations must be devoted to refining and processing the economic viability of low cost, green lignin-derived (nano)materials. Production of functionalized lignin, lignin supported metal/metal oxide nanocomposites or hydrogels is one of the effective approaches in (nano)technology. This review outlines recent research progresses, trends/challenges and future prospects about lignin-derived (nano)materials and their sustainable applications in wastewater treatment/purification, specifically focusing on adsorption and/or catalytic reduction/(photo)degradation of a variety of pollutants.