In this work, bio-based hydrogel composites of xanthan gum and cellulose fibers were developed to be used both as soil conditioners and topsoil covers, to promote plant growth and forest protection. The rheological, morphological, and water absorption properties of produced hydrogels were comprehensively investigated, together with the analysis of the effect of hydrogel addition to the soil. Specifically, the moisture absorption capability of these hydrogels was above 1000%, even after multiple dewatering/rehydration cycles. Moreover, the soil treated with 1.8 wt% of these materials increased the water absorption capacity by approximately 60% and reduced the water evaporation rate, due to the formation of a physical network between the soil, xanthan gum and cellulose fibers. Practical experiments on the growth of herbaceous and tomato plants were also performed, showing that the addition of less than 2 wt% of hydrogels into the soil resulted in higher growth rate values than untreated soil. Furthermore, it has been demonstrated that the use of the produced topsoil covers helped promote plant growth. The exceptional water-regulating properties of the investigated materials could allow for the development of a simple, inexpensive and scalable technology to be extensively applied in forestry and/or agricultural applications, to improve plant resilience and face the challenges related to climate change.