Waste black liquor lignin, obtained from bagasse from the small-scale paper industry, can be utilized for the synthesis of polyurethanes (PUs). Several polyurethane samples were prepared from laboratory black liquor (LBL) by reacting varying amounts of lignin ranging from 5 to 70% (w/v) in poly(ethylene glycol) (PEG) (having molecular weights of 200, 600, 1000, 1500 and 4000) with tolylene 2,4-diisocyanate (TDI). The effects of lignin concentration and molecular weight of PEG on mechanical and thermal properties of PUs obtained were investigated. The polyurethanes synthesised were characterized for different properties such as shear strength, adhesion and thermal stability. The shear strength of PU joints with aluminum was found to decrease with increase in both lignin concentration and molecular weight of PEG. Maximum shear strength, i.e. 3.6 N/mm(2), was shown by 50% (w/v) lignin in PEG of molecular weight 200.