Cellulose-based hydrogels (CBHs) have emerged as highly promising materials for advanced wound dressings, offering biocompatibility and unique physicochemical features. In this chapter, we focus on the major categories of cellulose used in hydrogels dressings, including bacterial cellulose, plant-derived cellulose, regenerated cellulose, and cellulose derivatives, and discuss their fabrication strategies, functional enhancements, and therapeutic effects. The integration of new functionalities, including antimicrobial activity, stimuli-responsiveness, mechanical enhancement, self-healing capability, hemostatic ability, and injectability, enables these systems to adapt to dynamic wound environments and address complex clinical needs. Despite substantial progress, challenges such as limited scalability and reproducibility of manufacturing, bioactive stability under sterilization, and the economic feasibility of highly functionalized systems continue to impede clinical translation. Overall, CBHs offer a versatile and evolving platform with the potential to redefine wound care through their adaptability, safety, and integration with advanced regenerative technologies.