Obtaining renewable fuels and chemicals from lignin presents an important challenge to the use of lignocellulosic biomass to meet sustainability and energy goals. We report on a thermocatalytic process for the depolymerization of lignin in supercritical ethanol over a CuMgAlO_x catalyst. Ethanol as solvent results in much higher monomer yields than methanol. In contrast to methanol, ethanol acts as a scavenger of formaldehyde derived from lignin decomposition. Studies with phenol and alkylated phenols evidence the critical role of the phenolic –OH groups and formaldehyde in undesired repolymerization reactions. O-alkylation and C-alkylation capping reactions with ethanol hinder repolymerization of the phenolic monomers formed during lignin disassembly. After reaction in ethanol at 380 °C for 8 h, this process delivers high yields of mainly alkylated mono-aromatics (60–86 wt%, depending on the lignin used) with a significant degree of deoxygenation. The oxygen-free aromatics can be used to replace reformate or can serve as base aromatic chemicals; the oxygenated aromatics can be used as low-sooting diesel fuel additives and as building blocks for polymers.