As a drilling operation proceeds deeper and deeper, drilling temperature tends to increase rapidly. This increase influences the drilling mud rheological properties negatively. The negative effect includes severe decrease of mud viscosity and gel strength, which makes many of mud additives not functional at high temperature. On the other hand, efforts are needed to be taken seriously against the large amount of lignocellulosic waste from oil palm industry. Recycling the unwanted materials into a valuable product is an industrial and environmental challenge which necessitates the need of better waste management. Therefore, this study investigates the possibility of lignin graft copolymer (LGC) as a potential hydrocarbon drilling multi-functional additive. In this direction, water soluble lignin graft copolymer (LGC) was prepared from oil palm empty fruit bunch (OPEFB) fiber as a renewable biomass source. In the application part, LGC has been subjected to the simulated hydrocarbon drilling conditions. The grafted lignin depicts high potential in viscosifying and gelling abilities at high temperatures. Also, it is performed reasonably well with fresh and saline drilling mud.