The principle and technique were reported here to produce lignin-based sand stabilizing material (LSSM) using extracted lignin from black liquor of straw paper mills. Field tests by using LSSM to stabilize and green sand dunes started in 2002. The field experiment was carried out in August 2005 when the newly formed plant community was 3 years old. The results from the comprehensive field experiment demonstrated that unlike polyvinyl acetate or foamed asphalt commonly used for dune stabilization, LSSM was plant-friendly material and could be used in combination with seeding and planting of desert species. By the help of LSSM, the desert species (i.e., Agriophyllum squarrosum (L.) Moq. and Artemisia desertorum Spreng. etc.) could be used to form community in 2-3 yeas and to stabilize sand dune effectively. The newly formed community was sustainable under an extremely dry climate conditions. The organic matter and total nitrogen in the soil increased significantly as the community were formed, while the change in P and K contents of the soil was negligible.