In the present study, we synthesized a low‐cost biodegradable hydrogel based on cellulose in order to perform controlled release of fertilizer. For this purpose, the cellulose was modified and crosslinked with urea. Then the prepared hydrogel underwent loading with the fertilizer in order to study the controlled release. Characterization of the samples was carried out by Fourier Transform Infrared (FT‐IR) spectroscopy, elemental analysis, thermal gravimetric analysis (TGA), and scanning electron microscopy (SEM). The hydrogel showed a good swelling behavior in distilled water, tap water, and 0.9% NaCl solution. Besides, water holding and water retention behavior of the hydrogel was investigated. Finally, the release of fertilizer from the loaded hydrogel was studied and showed excellent controlled release. According to the results, this hydrogel can be employed as a suitable moisture‐holding additive in the soil for agricultural purposes. © 2015 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2016, 133, 42935.