Lignin, a natural amorphous three-dimensional aromatic polymer, is investigated as an appropriate filler for biocomposites. The chemical modification of firsthand lignin is an effective pathway to accomplish acetoacetate functional groups replacing polar hydroxyl (-OH) groups, which capacitates lignin to possess better miscibility with poly(lactic acid) (PLA), compared with acidified lignin (Ac-lignin) and butyric lignin (By-lignin), for the sake of blending with poly(lactic acid) (PLA) to constitute a new biopolymer based composites. Generally speaking, the characterization of all PLA composites has been performed taking advantage of Fourier transform infrared (FTIR), scanning electron microscopy (SEM), dynamic Mechanical analysis (DMA), differential scanning calorimeter (DSC), thermogravimetric analysis (TGA), rheological analysis, and tensile test. Visibly, it is significant to highlight that the existence of acetoacetate functional groups enhances the miscibility, interfacial compatibility, and interface interaction between acetoacetate lignin (At-lignin) and PLA. Identical conclusions were obtained in this study where PLA/At-lignin biocomposites furthest maintain the tensile strength of pure PLA.