As the ever-increasing need for plastics and other polymeric materials, producing them ethically is an essential part of the business. Making it a sustainable and environmentally friendly industry is therefore critical. Filler for either a synthetic matrix or a natural starch matrix, cellulose presents a great chance to lessen the impact of non-biodegradable elements. Due to their excellent mechanical properties, biodegradability, biocompatibility, high specific surface area, and rich hydroxyl groups for extensive chemical modification, nanocelluloses have recently become increasingly popular as naturally derived, bio-based nanometer-sized reinforcement in a wide variety of technological areas. However, for its intrinsic hydrophilicity and difficulties in dispersion inside a hydrophobic matrix, the extraction of nanocellulose from cellulosic biomass and its dispersion in the matrix remain major hurdles. The literature provides a summary of recent advancements in nanocellulose research, including methods of extraction, surface modification, and polymeric composite applications. This chapter demonstrates how the source of the cellulosic materials and the processing factors affect the morphologies and performances of nanocellulose. Although nanocellulose is derived from organisms or plants that initially appear to be fragile, it can be used as a reinforcement material or the primary component to create high-value, cutting-edge products like high-performance nanocomposites, multifunctional hydrogels, conductive filaments, medical dressings, and energy storage materials. The development of high-performance nanocellulose-reinforced polymer composites is presented, along with research priorities and directions.