An atom-chip-based integrated optical lattice system for cold and ultracold atom applications is presented. The retroreflection optics necessary for forming the lattice are bonded directly to the atom chip, enabling a compact and robust on-chip optical lattice system. After achieving Bose-Einstein condensation in a magnetic chip trap, we load atoms directly into a vertically oriented 1D optical lattice and demonstrate Landau-Zener tunneling. The atom chip technology presented here can be readily extended to higher dimensional optical lattices.