In the present work, cellulose extracted from the locally available agriculture waste (areca leaf sheath) is converted to cellulose-PVA-based hydrogel (CPH). The alkaline treatment of biomass with 10% of NaOH solution leads to 36% (w/w) of cellulose yield. It is observed that higher the alkaline concentration faster the delignification process. The complete process of cellulose extraction is efficient, user friendly and cost effective. The purified cellulose is further converted to CPH which is very effective in removing organic dye (Methylene Blue) and metal ion (Pb2+) from water bodies. To the best of our knowledge, non-carboxylate cellulose-based hydrogel for dye removal is not reported earlier. The process of adsorption by CPH is analysed and studied by spectroscopic technique. The physically cross-linked CPH is non-toxic, low cost, metal-free, easy to prepare, and easy to dispose.