Lignin is a promising bio-based filler for poly(butylene adipate-co-terephthalate) (PBAT), yet its true contribution to biodegradation remains unclear—most studies rely on weight loss alone, neglecting CO₂ mineralization and lignin’s antibacterial activity. Here, lignin/PBAT composites with 1 wt% (LP-1) and 3 wt% (LP-2) lignin are assessed under composting conditions using both weight loss and mineralization rate. Lignin exhibits a dual role: it promotes hydrolytic weight loss (18.3% and 28.6% for LP-1 and LP-2 at 40 days), but significantly inhibits ultimate mineralization (one-year mineralization: 65.71% for pure PBAT vs. 48.74% and 29.53% for LP-1 and LP-2). A negative initial mineralization rate suggests transient antibacterial activity from released phenolic compounds. Lignin increases crystallization temperature (48.4 → 92.6 °C) and T_g (−28.5 → 49.1 °C), with 1% loading largely preserving mechanical properties. These findings demonstrate that weight loss alone is insufficient to assess degradation; mineralization must be included. Appropriate lignin loading enables balanced performance and degradation controllability, offering new insights into lifecycle assessment of green composites.