Phenoxy acetic acid is common reagent which is synthesize by reaction of phenol and chloroacetic acid. This study underscores the importance of Phenoxy acetic acid derivatives as valuable building blocks for the development of functional molecules with diverse applications. Here we are utilizing the biowaste derived lignin (BDC) as catalyst. As the nature of lignin provides porous surface for reaction with mild acidic nature to occur and speed up the reaction. The catalyst was isolated and charecterise for its surface morphology by BET, SEM analysis. Phenoxyacetic acid (PAA) was synthesized from the reaction of phenol and chloro acetic acid in preents of lignin catalyst. The reaction obays the green protocol performed in water as solvent. It was noted the optimized conditions of reaction at ambient temperature range of 60-65^o C and 10 mole % of catalyst. The reaction of phenol with chloroacetic acid under alkaline conditions yielding the product in the range of 78-82 %. The progress of the reaction was monitored by TLC (Toluene: MeoH 9:1). After completion of reaction in 20-40 minutes added 35 % HCl to get pH neutral. Further filter the reaction mixture to separate the catalyst. Collect filtrat and extract with benzene and vacuum distilled for desired product. Lignin as catalyst play important role in chemical reaction where rate of reaction depending on the surface area available at catalyst site.