Red mud (RM) was activated by a feasible digestion-precipitation method followed by calcination at 600 C (denoted as ACRM), which was used as a novel catalyst during the thermal degradation of the lignin. The prepared catalyst was then applied to the lignin derived from agricultural waste using a vertical fixed-bed microreactor between 350-650 C. The texture characteristics of the activated RM were characterized by XRF, FTIR, XRD, TEM, SEM-EDS, NH3-TPD, and the N2 isothermal absorption method. The analysis results indicated that the ACRM catalyst possessed a high specific surface area, hierarchical porosity, acidity and active metal oxides (Fe2O3, Al2O3, and TiO2). Based on the changes of the catalyst characteristics and the bio-oil composition, the relative contents of alkyl-phenols and the hydrocarbons significantly increased using the ACRM catalyst at 550 C, which was attributed to the strengthening of dehydroxylation, demethylation, demethoxylation, and alkylation reactions. The study demonstrated the ACRM could be used as a promising catalyst for upgrading the pyrolysis vapours of lignin with considerable economic and ecological benefits.