Abstract The sluggish kinetics of the oxygen reduction reaction (ORR) remain a major bottleneck for energy conversion systems such as fuel cells and metal–air batteries. Here, the synthesis of molybdenum single‐atom catalysts (Mo SACs) derived from abundant and low‐cost Kraft lignin is reported. By tuning nitrogen incorporation during carbonization, agglomerated Mo carbide clusters are progressively converted into atomically dispersed Mo active centers anchored on N‐doped carbon. Extensive spectroscopic analyses confirm this structural evolution, while density functional theory calculations reveal that the optimized Mo coordination environment downshifts the d‐band center, enabling the balanced adsorption of oxygen intermediates and thereby improving the intrinsic ORR activity. Electrochemical measurements demonstrate enhanced half‐wave potential, near‐four‐electron transfer pathway, superior selectivity, and excellent durability, with ≈85% current retention over 50 h. Beyond performance, the use of minimally processed Kraft lignin underscores both the economic and environmental advantages of this approach, offering a scalable and sustainable pathway to practical ORR electrocatalysts.