The Carl King actor disclosed that he started the group Edna's Hat with co-stars Sian Reese-Williams (Gennie Walker) and Dominic Brunt (Paddy Kirk)
"We are in a band, three of us from the show - myself, Sian who plays Gennie, Dominic who plays Paddy - and a couple of guys, one from the crew and one friend," he told STV.
Explaining how the band began, the star added: "It was something we kind of fell in to, some of us love singing, some of us love playing instruments and we just kind of fell together at a charity event and it all snowballed there."
Meanwhile, Lister also discussed Emmerdale's 40th anniversary on-screen music festival.
Referring to the appearance from The Proclaimers and their hit 'I'm Gonna Be (500 Miles)', Lister said: "Everybody loves a bit of 'I Will Walk 500 Miles'.
"And Scouting For Girls are friends of Emmerdale, they've been in and sang for us before in The Woolpack, so we we know them really well, and there were also some local bands that aren't as well known."
Emmerdale's birthday week kicks off on Monday, while the soap's much-anticipated live episode airs next Wednesday at 7pm on ITV1.
> Read more news and gossip about Emmerdale's 40th here
> Emmerdale live episode death: Alan Turner is bookies' favourite