Lignocellulosic materials such as agricultural residues have been identified as potential sustainable sources that can replace petroleum-based polymers. This study focused on the conversion of lignin extracted from bagasse to carbon fiber (CF) and cellulose nanocrystal (CNC). The highest extraction of lignin yield was achieved at 100 °C using 10% NaOH for 12 h. Carbon fibers were obtained by electro-spinning of bagasse lignin blended with polyvinyl alcohol (PVA) (11 wt/v %) followed by thermo-stabilization (250 °C) in an oxidizing atmosphere and further carbonization in an inert atmosphere (850 °C). Conventional hydrolysis process was used to extract cellulose nanocrystal from bagasse pulp. Morphological (scanning electron microscopy, SEM), spectral (Fourier transform infrared, FTIR) spectroscopy, elemental analysis, thermal characterization and surface area measurements have been carried out. Figures originated by SEM showed that CF ranges from 145 to 204 nm, while stabilized bagasse cellulose nanocrystal (SCNC) appeared as rod-shape like structure in the range of length 600–800 nm and diameter 5.33–19 μm. Characterization results revealed that CF exhibits microporous structure, while bagasse lignin and SCNC display mesoporous structure. In addition, the results proved that SCNC exhibits a percentage removal 71.56% for methylene blue dye in an aqueous solution.