Cellulose is the most abundant renewable polymer on Earth which is extensively distributed in diverse ecosystems. It is present in higher plants, marine organisms, and also produced through microbial processes in organisms like algae, fungi, and bacteria. From an industrial perspective, the semicrystalline nature of cellulose present in different plant and microbial sources enables the fabrication of various types of nanocellulose, such as nanofibre and nanocrystals, through mechanical disintegration and chemical methods, respectively. Nanocellulose distinguishes itself as a sustainable, nonharmful, and biodegradable polymer. It will enable sustainable development for responsible consumption and production. Possessing a range of excellent properties, it can be seamlessly integrated into various materials. Research on nanocellulose is gaining momentum in response to current issues related to fossil fuels, including concerns about CO2 emissions, plastic pollution, and the need for renewable energy sources. This review addresses nanocrystals production method from cellulose found in agricultural, microbial sources, and its applications in fields such as materials science, electronics, medicine, and environmental science.