Thermoplastic starch composites modified by enzymatic hydrolysis lignin (EHL) were prepared via a simple and environmentally-friendly process. Starch and EHL were plasticized with urea and methanamide as plasticizers in the preparation. The effects of the amount of plasticizers and EHL on the mechanical and water-absorption properties were investigated. The fractured surfaces of the composites were studied by using scanning electron microscopy (SEM). Properties of the composites were improved with adding plasticized EHL into pure thermoplastic starch. It was attributed to the good compatibility of modified EHL with plasticized starch.