The halogen-free microencapsulated red phosphorus flame retardant with multiple flame retardant properties was prepared by using piperazine-modified lignin (LP) and aluminum phosphate as capsule material. And then the flame retardant was added into acrylonitrile-butadiene-styrene (ABS) resin to improve its flame retardant property. The morphology and structure of the flame retardant were characterized by TEM, SEM, FT-IR and TGA. The effect of the flame retardant dosage on combustion properties of ABS was investigated. The results show that red phosphorus was actually coated completely by LP and aluminum phosphate. The ABS composite with 25% flame retardant forms a compact and thick char layer after combustion, and the flame retardant grade is UL94 V-0, the limiting oxygen index reaches 26.1%. Compared to ABS without flame retardant, the peak heat release rate of the ABS composite is reduced by 63% and the total smoke production is decreased by 25.8%.