Thermally induced gelation forming based on methylcellulose is recently being explored as a simple and environmentally benign process. Alumina slurry containing 0.1 wt% methylcellulose is subjected to Quasi Elastic Neutron Scattering (QENS) and rheological measurements in gelation temperature regimes to evolve a possible mechanism of the forming process. A reduction in diffusivity of water in the slurry from 2.16 to 1.92 × 10^-5 cm ² ·s^-1after exposure to 55°C is observed with QENS. This is found to be well correlated with a steep increase in viscosity from 1.2 Pa.s till 50°C to 50,000 Pa.s at 55°C. QENS studies revealed the diffusion of water occurs by jump diffusion with the jump lengths distributed randomly. Further, for the entire sample much longer residence time is found as compared to bulk water, which is due to hydrophilic interaction of water molecules with the methylcellulose in the slurry. Reduction in diffusivity of water along with the steep increase in viscosity could be understood as the strong, cross-linked polymer-solvent irreversible gel formation in presence of alumina which is responsible for the retention of a consolidated shape of the ceramic green body. Samples maintained the integrity while heat treatments achieving close to theoretical density values of3.98 g·cm^-3 at 1550°C.