There has been a significant scope toward the cutting‐edge investigations in hierarchical carbon nanostructured electrodes originating from cellulosic materials, such as cellulose nanofibers, available from natural cellulose and bacterial cellulose. Elements of energy storage systems (ESSs) are typically established upon inorganic/metal mixtures, carbonaceous implications, and petroleum‐derived hydrocarbon chemicals. However, these conventional substances may need help fulfilling the ever‐increasing needs of ESSs. Nanocellulose has grown significantly as an impressive 1D element due to its natural availability, eco‐friendliness, recyclability, structural identity, simple transformation, and dimensional durability. Here, in this review article, we have discussed the role and overview of cellulose‐based hydrogels in ESSs. Additionally, the extraction sources and solvents used for dissolution have been discussed in detail. Finally, the properties (such as self‐healing, transparency, strength and swelling behavior), and applications (such as flexible batteries, fuel cells, solar cells, flexible supercapacitors and carbon‐based derived from cellulose) in energy storage devices and conclusion with existing challenges have been updated with recent findings.