Commonly, lignin macromolecules have limitations in application to the thermoplastics industries due to poor dispersibility and interfacial compatibility within ligno-bioplastics. In this study, the dispersibility and interfacial compatibility of ethanol organosolv lignin (EOL) in PLA-based ligno-bioplastic were improved by enhancing the thermoplasticity via oxypropylation. Further, three types of EOLs extracted from different severity conditions were applied to investigate the effect of the structural characteristics of EOLs on the changes in the thermal properties. The thermal properties of oxypropylated EOL were dependent on the structural characteristics of the initial EOL as well as the degree of polymerization of propylene oxide. The thermoplasticity of EOLs extracted under mild condition was effectively increased as a new Tg and melting were observed. Based on increased thermoplasticity, the dispersibility and interfacial compatibility of EOL within PLA-based ligno-bioplastic were successfully improved, which compensates for the deterioration in mechanical strength of ligno-bioplastic due to the addition of unmodified EOL. Therefore, oxypropylation of EOL with suitable structural characteristics promises improved availability as a thermoplastic material.