The expanding field of lignin-containing nanocellulose offers a sustainable alternative to fossil-based substances in applications such as packaging, coatings, and composites. This has underscored the importance to explore the impact of raw materials due to the complexities of lignin structures and different raw fiber characteristics, which plays a significant role in determining the properties of the resultant lignin-rich cellulose materials. This study presents a detailed investigation and comparison on the production and structure-property relationships of lignin-containing microfibrillated cellulose (LMFC) fibers prepared from unbleached softwood and hardwood kraft pulps. The microfibrillation process was analyzed for both softwood and hardwood pulps, comparing the results across various stages of fibrillation. Distinguishing features of lignin structures in softwood and hardwood pulps were identified through Py-GC/MS analysis. Additionally, Digital Image Correlation was employed to investigate the varying failure patterns in LMFC films derived from different wood species. Softwood-derived LMFC films demonstrate less strain-concentrated regions and strain variation, attributed to the formation of more physical crosslinking joints by the elongated fibers. Consequently, softwood-origin LMFC films displayed superior load-sharing and enhanced tensile strength (287 MPa) compared to those derived from hardwood. Additionally, the denser lignin structures in unbleached softwood pulp further boosted the stiffness of resultant softwood-derived films. Upon recycling, LMFC films exhibited superior recovery of mechanical properties following drying, suggesting their significant potential for widespread commercial use.