With increasing ecological and environmental concerns because of the extensive use of petroleum-based products, the use of natural resources for preparation of functional materials is of great public value. Cellulose is introduced as an ideal and promising biomaterial for widespread application which is obtained from biobased sources such as plants, biomass, or bacteria, relying on efficient, scalable, and facile methods. Generally, sulfation, silylation, esterification, phosphorylation, etherification, and oxidation are common reactions that were applied for functionalization of cellulose; however, multicomponent reactions (MCRs), surmised as versatile and assorted approaches, have been deployed for the modification of cellulose. The functionalized celluloses enjoyed various unique phenomena and properties which render them promising biomaterials for various applications ranging from biomedicine to catalysis. Herein, diverse types of prominent MCRs encompassing Biginelli, Hantzsch, Kabachnik−Fields, and Betti, as well as two paramount isocyanide-based MCRs, namely, Passerini and Ugi, have been used in cellulose functionalization. MCRs, which have emerged as significant platforms to generate cellulose-based materials with new properties, are reviewed here with special emphasis on modification, functionalization, and cutting-edge applications such as drug delivery, catalysis, C−H functionalization reaction, and emulsifier, among others.