<p>As the most abundant natural polymer, cellulose products have made a significant contribution to sustainable development across multiple industries. These discrete classes of materials with unique thermal, mechanical, and biocompatible properties are represented by the traditional celluloses (fibers), nanocellulose derivatives (nanofibrillated cellulose, nanocrystalline cellulose, bacterial cellulose), and chemically modified derivatives. Methods of extraction for the production of nanocellulose include enzymatic and bacterial routes, mechanical homogenisation, and acid hydrolysis. In the past several years, attempts have centered on establishing low-energy and environmentally clean solvent processes for the improvement of sustainability. These applications include electronics (cellulose-based conductive composites, which are often loaded with carbon nanomaterials (such as carbon nanotubes or graphene) for developing energy storage and sensing devices), biomedical engineering, including the complexing and biocompatibility of nanocellulose in wound dressings, drug delivery systems, and tissue scaffolds. Its renewable feature is favorable to traditional industries involving textiles and packaging, while its tunable optical and responsive properties are well explored and employed in different fields, including optoelectronics and smart materials. The potential is highlighted in the transition toward circular economies by engineered successors of hybrid-material creation, bacterial nanocellulose generation, and biorefinery processes embedding reduced environmental footprints combined with enhanced functionalities. From cellulose extraction to its end product and disposal, including possible environmental effects, is briefly explained through Life Cycle Assessment (LCA). The integration of sustainable engineering, biotechnology, and nanotechnology with cellulose-based materials creates a foundation for achieving global sustainability goals, although scaling environmentally friendly extraction methods and enhancing material performance for high-demand applications still present challenges.</p> Graphical abstract <p></p>