A promising ecofriendly, cost-effective biomaterial derived from natural sources, i.e., lignocellulose natural fibers from trees, plants, agri waste, fruits, vegetables, seeds, and leaves. It clicked the attention of the researchers due to promising properties and versatility. The aim of the study is to examine the recent developments and preparation methods and extraction techniques for nanolignocellulose materials from nature. It also discusses the wide range of applications that use nano cellulose’s remarkable properties for a variety of research fields. Current work discussed advancements in nano cellulose preparation techniques, innovative methods, and cutting-edge applications. The ease of nano cellulose excels as a material for tissue engineering scaffolds, wound dressings, flexible and sustainable electronics, and drug delivery systems in the biomedical industry. It is desirable component in composites due to its remarkable reinforcing abilities in polymers. The use of environmental applications such as water purification, oil spill cleanup, and biodegradable packaging is also highlighted in this research. The studies emphasize the need for more investigation and optimization of extraction processes, characterization, and applications. This multidisciplinary study intends to motivate academics and scientists to fully utilize nano cellulose and contribute to the creation of environmentally friendly and sustainable solutions across a range of industries.