Digestion of cellulosic biomass solids may be complicated by release of lignin therefrom. Methods and systems for processing a reaction product containing lignin-derived products, such as phenolics, can comprise hydrotreating the reaction product to convert the lignin-derived products to desired higher molecular weight compounds. The methods and systems can further include separating the higher molecular weight compounds from unconverted products, such as unconverted phenolics, and recycling the unconverted phenolics for use as at least a portion of the digestion solvent and for further conversion to desired higher molecular weight compounds with additional hydrotreatment. The methods and systems can further include a further hydrotreatment step configured for additional lignin conversion and/or a further hydrotreatment step configured for generating hydrogen.