The demand for environmentally friendly and sustainable materials has led to an increased interest in green synthesis methods for biomaterials used in tissue engineering applications. Cellulose obtained from renewable sources is considered a promising option because of its abundance, biocompatibility, and biodegradability. Hydrogels, with their capacity to mimic the extracellular matrix and support biological processes, are an adaptable biomaterial for tissue engineering scaffolds. This chapter gives a thorough overview of green synthesis methods for cellulose-derived hydrogels and their potential uses in tissue engineering. The synthesis of cellulose-based hydrogels using ecologically friendly methods include minimizing harmful compounds, lowering energy usage, and employing safe solvents. Such approaches include microwave-assisted synthesis, sonication, and enzymatic transformation. These methods not only reduce environmental effect, but they also increase the biocompatibility and functionality of the produced hydrogel. Cellulose-based hydrogels have various advantages in tissue engineering applications. Their innate biocompatibility and resemblance to the extracellular matrix promote cell adhesion, proliferation, and differentiation. In bone tissue engineering, cellulose nanofibril hydrogels have been found to stimulate the proliferation and differentiation of mesenchymal stem cells. Furthermore, hydrogel features such as tensile strength, porosity, and degradation rate can be tailored to fulfill tissue-specific requirements. For example, genipin cross-linked carboxymethylcellulose hydrogels have been engineered to have tunable mechanical characteristics ideal for cartilage tissue engineering. Furthermore, adding bioactive chemicals into cellulose-based hydrogels will enhance their therapeutic potential. In skin tissue engineering, cellulose-based hydrogels incorporating growth factors or nanoparticles have demonstrated encouraging results in stimulating angiogenesis and wound healing. The biodegradability of cellulose-derived hydrogels is another critical component of tissue engineering. These hydrogels gradually degrade in the body, allowing regenerated tissues to integrate and reducing unwanted immune responses. Oxidized cellulose hydrogels, for example, have been shown to degrade over time, allowing tissue-engineered constructs to remodel more easily. In conclusion, the green manufacture of cellulose-derived hydrogels shows great promise for tissue engineering applications. Advanced hydrogel scaffolds can be created for various tissue regeneration strategies by utilizing sustainable production methods and leveraging cellulose’s unique features, such as biocompatibility, tailorability, and biodegradability. Research in this field will enable cellulose-based hydrogels to function even more, opening the door to creative solutions in biomedical engineering and regenerative medicine.