In material science, cellulose the main building block of plant cell walls is becoming known as a practical and affordable alternative. Cellulose, which is derived from a variety of materials including wood and agricultural waste, has the potential to replace petroleum-based resources with renewable ones. Because of its distinct structure, biocompatibility, and effective qualities, biopolymer nanocellulose which comes from a variety of plants and agricultural waste is gaining attention in the field of advanced nanotechnology for use in biosensing, catalysis, and drug delivery. Chiral chromatographic separation is being used for cellulose derivatives, which offer viable substitutes. This chapter addresses the environmental effects and economic feasibility of cellulose manufacturing processes, including the use of organic acids, wood pulp, and ionic liquids. Difficulties are addressed in detail, including competition from established products and restricted usefulness. Applications for cellulose and its derivatives are found in a wide range of industries, such as biomedicine, sensors, water purification, and microbiological activity. The chapter also highlights the critical role that continuous research plays in improving cellulose-based materials for sustainable and functional reasons by projecting future developments in green solubilization systems, smart electronics, and sustainable alterations.