The extensive utilization of non-biodegradable plastic agricultural mulch in the past few decades has resulted in severe environmental pollution and a decline in soil fertility. The present study involves the fabrication of environmentally friendly paper-based mulch with dual functionality, incorporating agrochemicals and heavy metal ligands, through a sustainable papermaking/coating technique. The functional paper-based mulch consists of a cellulose fiber web incorporated with Emamectin Benzoate (EB)@ Aminated sodium lignosulfonate (ASL). The spherical microcapsules loaded with the pesticide EB exhibited an optimal core-shell structure for enhanced protection and controlled release of the photosensitizer EB (Sustained release >75 % in 50 h). Meanwhile, the ASL, enriched with metal chelating groups (-COOH, -OH, and -NH, etc.), served as a stabilizing agent for heavy metal ions, enhancing soil remediation efficiency. The performance of paper-based mulch was enhanced by the application of a hydrophobic layer composed of natural chitosan/carnauba wax, resulting in exceptional characteristics such as superior tensile strength, hydrophobicity, heat insulation, moisture retention, as well as compostability and biodegradability (biodegradation >80 % after 70 days). This study developed a revolutionary lignocellulosic eco-friendly mulch that enables controlled agrochemical release and soil heavy metal remediation, leading to a superior substitute to conventional and non-biodegradable plastic mulch used in agriculture.