Current pulping technologies only valorize the cellulosic fiber giving total yields from biomass below 50 %. Catalytic fractionation enables valorization of both cellulose, lignin, and, optionally, also the hemicellulose. The process consists of two operations occurring in one pot: (1) solvolysis to separate lignin and hemicellulose from cellulose, and (2) transition metal catalyzed reactions to depolymerize lignin and to stabilized monophenolic products. In this article, new insights into the roles of the solvolysis step as well as the operation of the transition metal catalyst are given. By separating the solvolysis and transition metal catalyzed hydrogen transfer reactions in space and time by applying a flow-through set-up, we have been able to study the solvolysis and transition metal catalyzed reactions separately. Interestingly, the solvolysis generates a high amount of monophenolic compounds by pealing off the end groups from the lignin polymer and the main role of the transition metal catalyst is to stabilize these monomers by transfer hydrogenation/hydrogenolysis reactions. The experimental data from the transition metal catalyzed transfer hydrogenation/hydrogenolysis reactions was supported by molecular dynamics simulations using ReaXFF.