The aim of this study was to using a lignin based resin (LB) to improve the performance of the soy flour based adhesive. Soy flour (SF), polyamidoamine-epichlorohydrin (PAE), LB was used to develop a plywood adhesive. The solid content and viscosity of the adhesive, functional groups, thermo-stability, and crystallinity of the cured adhesive were characterized and the performance of the resultant adhesive was evaluated by fabricating three-ply plywood. Results showed using LB and PAE mixture to modify SF adhesive improves dry and wet bond strength by 66.3 and 184.2%. PAE contributed more for the wet bond strength improvement and the LB contributed more for the dry bond strength. The improvement was attributed to: 1) LB/PAE reacted with the functions of the soy protein and form a cross-linking network; 2) Polycondensation reaction between LB molecules further improved crosslinking density of the adhesive and formed a interpenetration structure with crosslinked protein; 3)The easy penetration of LB on wood surface and formed more interlock with wood. The denser structure created by LB and PAE mixture improved the thermal stability and decreased the crystallinity of cured adhesive. The usage of the LB and PAE mixture increased solid content by 35.5%, meanwhile, makes its viscosity acceptable for the industrial application.