Kraft lignin was efficiently functionalized with octadienyl ether linkages through the palladium-catalyzed telomerization of 1,3-butadiene. Comparison with molecular model substrates assessed the grafting of phenols and alcohols and an optimization study led to up to 69 % conversion of the total number of hydroxyl groups present in lignin. This catalytic study evidenced the partial oxidation of triphenylphosphine into triphenylphosphine oxide and triphenylphosphine sulfide by contaminants present in the industrial grade kraft lignin. The telomerised lignin is a malleable material and a preliminary study of the thermal properties showed a decrease in the glass transition in comparison with the starting material.