Cellulose, a natural, renewable, and environment friendly biopolymer, has been considered as a sustainable feedstock in the near future. However, only 0.3% of cellulose is today processed since it is not soluble in conventional solvents due to the strong hydrogen bonding network and highly ordered structure. Hence, the search of effective and eco-friendly solvents for cellulose dissolution has been a key pillar for decades. In the recent years, ionic liquids (ILs) have been proposed as green solvents for cellulose and have been applied for the production of cellulose-based fibers. This review aims to focus the attention toward fiber spinning methods of cellulose based on ILs, as well as recent progress in cellulose dissolution using ILs. Moreover, the development of cellulosic fibers blended with other biopolymers, and cellulose composites are presented. Finally, different applications of cellulose fibers and composites are summarized and discussed.