For the first time, soy protein isolate (SPI)/ hydroxypropyl alkaline lignin (HPL) composites have been successfully prepared by mixing them in aqueous solution containing a small amount of glutaraldehyde as compatibilizer, and then compression-molded to obtain plastic sheets. The structures of the SPI/HPL composites were characterized by Fourier transform infrared spectroscopy, X-ray diffraction, transmission electron microscopy, and scanning electron microscopy, indicating the existence of amorphous networks and nanoscale HPL dispersion in the SPI matrix. When HPL content was lower than 6 wt %, the HPL-domain occurred in SPI/HPL composites with a dimension of about 50 nm, indicating a high interfacial activity. Differential scanning calorimetry analysis showed that the glass transition temperature of the SPI/HPL sheets increased from 62.5 to 70.4°C with an increase of HPL content from 0 to 6 wt %. Moreover, the tensile strength of the SPI/HPL nanocomposite sheets with 6 wt % HPL and 3.3 wt % glutaraldehyde was enhanced from 8.4 to 23.1 MPa compared with that of the SPI sheets, suggesting that the nanoscale HPL dispersion significantly reinforced the SPI materials.